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Fitch Approves Rating to Silknet

Fitch Approves Rating to Silknet

Fitch Ratings international rating company has conferred B+ rating to Silknet cellular communications operator with outlook of Stable.

Fitch’s rating reflects the agency’s positive outlook on Silknet’s future: its ability to defend market positions, expected significant investments into new fibre infrastructure, key growth drivers, including broadband and pay-TV, and a cost optimization that will deliver an improvement of margins. The agency noted that any refinancing risk for Silknet is mitigated by moderate leverage levels, and Fitch expects leverage to remain stable going forward. Fitch also noted Silknet’s successful refinancing of all its FX-denominated debt into local currency and strong market position as Georgia’s incumbent fixed-line telecoms provider as key factors behind its strong rating and stable outlook.

Silknet is the leading fixed-line telecommunications operator in Georgia. The company has the largest inter- and intra-city fiber-optics network in Georgia. As at 1H 2016, Silknet has approximately 40% market share in fixed broadband, 25% market share in pay TV and 45% market share in fixed telephony. The company is the leading provider of sports content with exclusive rights to English Premier League, Spanish La Liga, Bundesliga, NBA and other competitions.