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Qtel’s Wataniya stake buyout labelled ‘credit negative’

Credit ratings agency Moody's has said the proposed minority stake buyout by Qtel in Wataniya is credit negative, Gulf Times has reported. Moody's said Qtel's 'A2' rating and 'stable' outlook remain unchanged, although it will reduce its liquidity headroom, given that this is the second significant minority buyout it announced within a month. However, it said the company can absorb the initial negative cash impact pro-forma the combined effects of material upcoming and closed transactions.