From the Qualcomm thread this note on CTI, which is one of TESAM's service providers in Argentina:
To: Tom Brush (34277 )
From: michael piturro
Thursday, Jul 8 1999 2:40PM ET
Reply # of 34280
Cdma News>
July 8, 1999
Dow Jones Newswires
CTI Holdings/S&P-2: Expectations Of
Reduced Leverage
NEW YORK -- Standard & Poor's Thursday revised its outlook on
Argentina-based CTI Holdings S.A. to positive from stable.
At the same time, S&P affirmed its single-B-plus corporate credit rating on
CTI, as well as its single-B rating on the company's $263 million ($150
million initial proceeds) senior deferred coupon notes due 2008.
The rating agency said "The outlook revision reflects expectations that
CTI's improved operating performance and GTE Corp.'s continuing
support will allow the company to reduce leverage and heal its financial
profile further.
"The ratings on CTI reflect its still weak financial position, the sensitivity of
demand to economic activity in the company's franchised service area, and
the increased competition in the sector. These factors are somewhat offset
by CTI's leading market share in its service areas, achieved operating
improvements, and the financial and operating support of parent GTE
Corp.
"CTI has a perpetual license to provide cellular telephony in the interior of
Argentina in an area that encompasses about 60% of Argentina's total
population. Since it started operations in 1994, the number of customers
have increased to about 714,000, a 4.2% penetration rate, as of March
1999. However, the company's service area has a lower population
density and income per capita than the country's average, making it more
volatile and sensitive to recessive environments.
"Once the only cellular provider in its service area, CTI now operates in
two duopolistic regional markets which will be entered by to new personal
communications services (PCS) competitors each by year-end 1999. The
company, with a combined overall market share of 47% in its two areas of
operation, has started to convert its network to CDMA to better compete
with the PCS providers. Digitalization is expected to reach about 30% of
pops (population equivalents) in 1999. In addition, a consortium including
CTI has been awarded a license to provide basic and long-distance
service starting in November 1999," the rating agency said. |
