Pakistan Mobile bond tender triggers default alert

S&P says the material tender discount of up to 30% versus face value would prompt it to put a default rating on the bonds if the proposed transaction is completed.

As investors are pondering whether to accept a discounted bond tender offer from Pakistan Mobile Communications, Standard Poor's yesterday issued a note saying that if the proposed transaction is completed, it would view it as being tantamount to default. One reason, it says, is that the offer represents a material discount to face value.

The ratings agency also believes that the mobile operator could face difficulty servicing its debt obligations and complying with its covenants over the next one...

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