1. Credit Profile And Rating Migration Of
Mobile Industry In The
Middle East North American Countries
Management of
Financial Services
Presented By:
Neha Sharma
Roll No. 960
3. CREDIT PROFILING
• A credit profile is a document which provides information
about a person’s or a business entity’s credit history.
• Credit profiles are used by lenders and other agencies
which offer credit to determine creditworthiness.
• They are also utilized by prospective landlords and other
people who might have an interest in an entity’s credit
history.
• A good credit profile will make it easier for someone to
access credit, and a bad credit profile can become a major
stumbling block.
4. Credit Rating
Credit rating is an analysis of the
credit risks associated with a financial
instrument or a financial entity.
It is a rating given to a particular
entity based on the credentials and
the extent to which the financial
statements of the entity are sound, in
terms of past borrowing and lending.
6. Objective of Credit Rating
• The primary objective of rating is to
provide guidance to the investors/creditors
in determining a credit risk associated with
debt instrument/credit obligation.
• It does not amount a recommendation to
buy, hold or sell an instrument as it does not
take into consideration factors such as
market prices, personal risk preferences and
other considerations which may influence
an investment decision.
10. Core Rating Drivers for Ratings
1. Operating Environment, specifically market
dynamics, such as industry structure, market
share, and organic growth opportunities, together
with the regulatory environment
2. Strategy and Execution, covering the nature of a
company’s business model, reinvestment
requirements, competence and style of
management
3. Technology, with consideration of how exposed
a company may be to technological change and
howwell positioned it is to handle such change.
11. 4. Financial Strength, with emphasis
on return on assets, leverage, and
interest coverage
5. Developed or Emerging market,
an assessment of the legal and
political environment
6. Generic rating factors applicable
across all industries – such as
corporate governance, liquidity, and
sovereign ceiling considerations.
12. BENEFITS OF CREDIT
PROFILING
To the Investors
• Helps in Investment Decision
• Benefits of Rating Reviews
• Assurance of Safety
• Easy Understandability of
Investment Proposal Choice of
Instruments
• Saves Investor's Time and Effort
13. To the Company
• Improves Corporate Image
• Lowers Cost of Borrowing
• Wider Audience for Borrowing
• Good for Non-Popular
Companies
• Act as a Marketing Tool
• Helps in Growth and
Expansion
14. Credit Migration
• Credit Migration refers to upgrading or worsening
in a credit's ranking and credit grade over time. It
is the migration of a debt instrument from one
rating to another rating over a period of time.
• This movement indicates the change in the credit
quality of the instrument assessed by the rating
agency.
15. The International Rating Agencies such as
S&Ps, Moody's, and Fitch assess the credit
quality of the entire debt instrument in their
portfolio and assign a rating to the credit
quality.
This rating changes as and when new
information is available about the obligor's
financial health.
17. Mobile Industry in Canada
Canada is a country where the telecommunications industry was mostly
state-owned, but the sector’s privatisation has meant the founding of some of
the largest telecom companies in North America.
18. Major Mobile Companies in the
Canada
Rogers Wireless
• With nearly 9,000,000 subscribers, this company which is
headquartered in Toronto is the leading company in Canada
when it comes to the telecommunications industry, especially
since it purchased Fido, the wireless network, in 2004. But
there are many other reasons for Rogers’ leadership, like the
fact that it also owns Chatr wireless network, or that the
company carries phones made by most manufacturers, from
Samsung and Apple to Nokia, Motorola, LG or Sony Ericsson,
HTC, HP…
19. Major Mobile Companies in the
Canada
BellMobility
• Bell Mobility (with headquarters in Mississauga) is clearly number two
of the list with more than 7,000,000 subscribers. Operating under the
networks it owns (Virgin Mobile Canada, Solo Mobile and Loblaw’s PC
Mobile) the Bell network comes on Motorola, LG, Samsung, Nokia,
Sanyo, Palm, RIM, HTC…and Apple.
TelusMobility
• Headquartered in Burnaby, Telus has nearly 7,000,000 subscribers. At
first it was a way for the Alberta Government Telephones Commission to
be privatised back in 1990. It wasn’t until 1996 that Telus became a
consumer brand (one year after purchasing Ed Tel). Among the devices
Telus offers, we can find Huawei, HTC, Nokia, LG, Samsung, RIM…
Telus recently became the first North American operator (out of the
wireless ones) to offer HSPA+ Dual Cell technology.
23. ROGERS
Rating & Outlook
FITCH
Default Rating BBB+ with a stable outlook
Senior unsecured debt BBB+ with a stable outlook
MOODY'S
Default Rating Baa1, stable outlook
Senior unsecured debt Baa1, stable outlook
STANDARD & POOR'S
Default Rating BBB+ with a stable outlook
Senior unsecured debt BBB+ with a stable outlook
24.
25. TELUS
Rating & Outlook
DBRS
Commercial paper R-1 (low)
Long-term Debt A (low)
MOODY'S
Notes BAA1 / Stable
STANDARD & POOR'S
Notes BBB+ / Stable
Long-term Debt BBB+ / Stable
26. MOBILE INDUSTRY IN USA
There are many telecommunications companies in the USA, some of them
provide services all around the country and some of them in certain areas alone.
But the top 3 companies in number of subscribers are Verizon Wireless, AT&T
Mobility and Century Link.
27. Mobile Companies in USA •
Verizon
• Verizon Wireless is the largest mobile services
provider in the US, with over 108.7 million
customers. The main factor for its success is
its customer service and network reach and
reliability, which has awarded it the best J. D.
Power’s Custom Satisfaction award.
28. AT & T
• With 103 million subscribers, AT&T Mobility comes in
a second place in the ranking, right after Verizon,
mainly for its customer services. It has the largest
selection of available phones, its wireless network is
extensive, with the largest 4G network within the US.
Century Link
• CenturyLink, Inc., is an American multinational
communications company headquartered in Monroe,
Louisiana. It provides communications and data
services to residential, business, governmental and
wholesale customers. It is the third-largest
telecommunications company in the United States in
terms of lines served.
32. Rating
FITCH
Senior Unsecured 30-
year notes
A
MOODY'S
Senior unsecured rating A3
Short term rating Prime-2
STANDARD & POOR'S
Corporate Rating A-/Stable/A-2
Senior Unsecured Notes
A-
Due 2042
