Moody’s Investors Service assigned a first-time, top-tier, investment-grade rating of Aa3 to the $1
billion program of medium-term, euro-denominated notes to be issued by Belgacom Finance S.A.
The debt is
unconditionally and irrevocably guaranteed by Brussels-based Belgacom S.A. Droit Public, the dominant
telecommunications provider in Belgium. Belgacom offers local, long-distance and international wireline telephony,
and also mobile wireless services.
The Belgian government, which cannot under current law reduce its stake, owns
50 percent plus one share of Belgacom. The remainder is owned by a consortium which includes Ameritech Corp., Tele
Danmark and Singapore Telecom.
“We believe there is scope for overall telecom services growth in Belgium,
and that the company will benefit from this growth,” said Eric de Bodard, managing director, and Carlos Winzer,
senior credit officer, for Moody’s European corporate ratings group, London.
“At present, there are relatively
lower penetration rates in traditional telephony, [Integrated Services Digital Network] lines and mobile telephones in
Belgium compared with other European countries. Turnover as a percentage of gross domestic product in Belgium is
only 1.5 percent as compared to a European average of 2.2 percent.”
Despite increasing telecommunications
competition in the country, the Moody’s analysts said they expect Belgacom to “improve its financial strength
and retain a strong market position.”
