The Sunday Mail
Sunday Mail Reporter
LIQUID Telecommunication Holdings’ diversification has enabled it to weather the headwinds of currency volatility particularly in Zimbabwe and retain its credit rating at B1, according to Moody’s Investors Service.
The ratings agency’s vice president-senior analyst (EMEA Corporate Finance Group based in Dubai) Dion Bate said the company’s footprint in 13 African countries has largely insulated it from declining financial performance in Zimbabwe.
“The affirmation reflects the benefits of diversified business across 13 African countries that have enabled Liquid Telecom to withstand a decline in financial performance from its Zimbabwe operations,” said Bate.
“While Liquid Telecom will continue to benefit from the strong demand for its telecommunication services across Africa, leverage and interest cover metrics remain susceptible to local currency fluctuations against the US dollar.”
The depreciation of the Zimbabwe dollar and difficulties in repatriating profits have been the major twin challenges affecting investors.
However, the strong performance in South Africa managed to temper the decline.
