Silknet's $ 300 Million Bonds were Assigned B Rating by FITCH RATINGS

Fitch Ratings has assigned an expected B (EXP) rating to Silknet's $ 300 million subordinated bonds. Fitch notes that it is possible to increase the recovery rating to RR4.

The company will use the proceeds from the issuance of bonds to refinance $ 200 million in Eurobonds and GEL-denominated bonds, to finance shareholder shares and to achieve general corporate goals. Silknet will also be able to repay part of its new bonds in the short term.

"We expect that Silknet's rating will remain at B level after the planned transactions," the rating company said.

Fitch also predicts that mobile network revenue for Silknet will increase by a single percentage point in 2022-2024. The reason for this is that network modernization and access to mobile internet are gradually increasing.