STC acquisition of Vodafone Egypt credit negative, if debt funded – Moody’s – ZAWYA

STC acquisition of Vodafone Egypt credit negative, if debt funded – Moody’s – ZAWYA

STC acquisition of Vodafone Egypt credit negative, if debt funded - Moody's. The ratings agency does not expect a deal to close before June 2020. STC signed a non-binding memorandum of understanding (MoU) with Vodafone Group to purchase its 55 percent controlling stake in Vodafone Egypt for $2.39 billion.. Moody's expects pro forma retained cash flow/debt to decrease to 37.3 percent from 52.3 percent at year-end 2019 and pro forma EBITDA margins to decrease to around 48.1 percent from 48.3 percent at year-end 2019.. "The decrease in margins could be partially offset by synergies the company can extract from the transaction, given the proximity of the two countries and the lower labor cost in Egypt compared to Saudi Arabia," the ratings agency said..