GATEWAY TELECOMMUNICATIONS SA http://www.alacrastore.com/company-snapshot/GATEWAY_TELECOMMUNICATIONS_SA-3976981 Saturday, August 30, 2008 9:42:21 AM 3976981 GATEWAY TELECOMMUNICATIONS SA en AlacraStore RSS Builder 1.0 30 http://www.alacrastore.com/storecontent/spcred/668594spcred/668594normThe latest News from S&Pglobal8/29/2008 3:26:47 PM100News668594South AfricaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsTelecommunications & CableNewsLONDON (Standard&Poor's) Aug. 29, 2008--Standard&Poor's Ratings Services said today it placed all ratings on South Africa-based emerging markets telecommunications services provider Gateway Telecommunications S.A. (Proprietary) Ltd. (Gateway) on CreditWatch with positive implications, including the 'B-' long-term corporate credit rating and the 'B-' debt rating on the $132.5 million notes issued by Gateway Telecommunications PLC and guaranteed by Gateway. The CreditWatch placement follows the announcement of the proposed sale of Gateway's carrier services and business network solutions subsidiaries to South African mobile operator Vodacom Group (Pty) Ltd., a joint venture company between Telkom S.A. Ltd. (BBB/Positive/--) and Vodafone Group PLC (A-/Stable/A-2), for about $700 million. Gateway will retain its currently loss-making start-up pay-TV business, launched in JulyZAFGateway Telecommunications S.A. (Proprietary) Ltd.408118EMERGINGEUROMIDAFRTSYSNEWSGLOBISSCORPTelecommunicationsCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/668595spcred/668595normThe latest Research Update from S&Pglobal8/29/2008 3:26:00 PM175Research Update668595South AfricaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsTelecommunications & CableResearch UpdateOn Aug. 29, 2008, Standard&Poor's Ratings Services placed all ratings on South Africa-based emerging markets telecommunications services provider Gateway Telecommunications S.A. (Proprietary) Ltd. (Gateway) on CreditWatch with positive implications, including the 'B-' long-term corporate credit rating and the 'B-' debt rating on the $132.5 million notes issued by Gateway Telecommunications PLC and guaranteed by Gateway. The CreditWatch placement follows the announcement of the proposed sale of Gateway's carrier services and business network solutions subsidiaries to South African mobile operator Vodacom Group (Pty) Ltd., a joint venture company between Telkom S.A. Ltd. (BBB/Positive/--) and Vodafone Group PLC (A-/Stable/A-2), for about $700 million. Gateway will retain its currently loss-making start-up pay-TV business, launched in July 2007, through the group's 63.5%-ownedZAFGateway Telecommunications S.A. (Proprietary) Ltd.408118EMERGINGEUROMIDAFRTSYSRESUPDZAF367816S3122NGateway Telecommunications PLC408121EUROMIDAFREMERGING864175Z@LNGLOBISSCORPTelecommunicationsCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/626815spcred/626815normThe latest News from S&P1/21/2008 12:58:49 PMNews100global626815South AfricaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsTelecommunications & CableNewsLONDON (Standard&Poor's) Jan. 21, 2008--Standard&Poor's Ratings Services said today it lowered its long-term corporate credit rating on South Africa-based emerging markets telecommunications services provider Gateway Telecommunications S.A. (Proprietary) Ltd. (Gateway) to 'B-' from 'B'. The outlook is stable. At the same time, Standard&Poor's lowered to 'B-' from 'B' its debt rating on the $132.5 million senior secured notes issued by Gateway Telecommunications PLC (GTP) due 2013 and guaranteed by Gateway. The recovery rating of '3' on the senior secured notes is unchanged, indicating meaningful (50%-70%) recovery expectations. "The downgrade follows the announcement of additional 4.5 year $62 million payment-in-kind (PIK) loans raised at the unrestricted satellite pay-TV venture Gateway Broadcast Services Ltd. (GBS), whichZAFGateway Telecommunications S.A. (Proprietary) Ltd.408118EMERGINGEUROMIDAFRTSYSNEWSGLOBISSCORPTelecommunicationsCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/626816spcred/626816normThe latest Research Update from S&P1/21/2008 12:58:49 PMResearch Update175global626816South AfricaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsHigh TechnologyTelecommunications & CableResearch UpdateOn Jan. 21, 2008, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on South Africa-based emerging markets telecommunications services provider Gateway Telecommunications S.A. (Proprietary) Ltd. (Gateway) to 'B-' from 'B'. The outlook is stable. At the same time, Standard&Poor's lowered to 'B-' from 'B' its debt rating on the $132.5 million senior secured notes issued by Gateway Telecommunications PLC (GTP) due 2013 and guaranteed by Gateway. The recovery rating of '3' on the senior secured notes is unchanged, indicating meaningful (50%-70%) recovery expectations. The downgrade follows the announcement of additional 4.5 year $62 million payment-in-kind (PIK) loans raised at the unrestricted satellite pay-TV venture Gateway Broadcast Services Ltd. (GBS), which is 63.5%-owned by Gateway. ThisZAFGateway Telecommunications S.A. (Proprietary) Ltd.408118EMERGINGEUROMIDAFRTSYSRESUPDZAF367816S3122NGateway Telecommunications PLC408121EMERGINGEUROMIDAFR864175Z@LNGLOBISSCORPHighTelecommunicationsCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/623287spcred/623287normThe latest Full Report from S&P12/28/2007 1:17:50 PMFull Report400global623287South AfricaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsTelecommunications & CableHigh TechnologyFull ReportStrong position in sub-Saharan African mobile telephony markets due to low penetration Low maintenance capital expenditures Good market positions in the majority of countries of operation Long-term debt maturity profile Highly leveraged financial risk profile High customer concentration and dependence on a single satellite bandwidth capacity provider Significant cash outflow associated with the pay-TV venture Unpredictable and potentially detrimental regulatory developments in some markets The ratings on South Africa-based emerging markets telecommunications service provider Gateway Telecommunications S.A. (Proprietary) Ltd. (Gateway) are constrained by its high leverage; currently loss-making start-up new pay-TV business; high customer concentration, especially on Celtel (the wireless arm of Mobile Telecommunications Co.); unpredictable regulatory developments in some countries of operations; and high dependence on one satellite bandwidthZAFGateway Telecommunications S.A. (Proprietary) Ltd.408118EMERGINGEUROMIDAFRTSYSFULLGBR196877COLT Telecom Group Ltd.318853EUROMIDAFRCTM@LNGLOBISSCORPTelecommunicationsHighCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/623292spcred/623292normThe latest Summary from S&P12/28/2007 1:17:50 PMSummary175global623292South AfricaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsHigh TechnologyTelecommunications & CableSummaryThe ratings on South Africa-based emerging markets telecommunications service provider Gateway Telecommunications S.A. (Proprietary) Ltd. (Gateway) are constrained by its high leverage; currently loss-making start-up new pay-TV business; high customer concentration, especially on Celtel (the wireless arm of Mobile Telecommunications Co.); unpredictable regulatory developments in some countries of operations; and high dependence on one satellite bandwidth capacity supplier. The ratings are supported, however, by low consolidated ongoing capital expenditure needs; good market positions; and significant growth prospects in the underpenetrated African mobile markets in which Gateway operates. Gross reported debt was $189.0 million at Sept. 30, 2007, including $132.5 million senior secured notes, $16.3 million accrued subordinated payment-in-kind (PIK) notes and the five-year $40 million zero-coupon loan with common BZAFGateway Telecommunications S.A. (Proprietary) Ltd.408118EMERGINGEUROMIDAFRTSYSSUMMARYGBR196877COLT Telecom Group Ltd.318853EUROMIDAFRCTM@LNGLOBISSCORPHighTelecommunicationsCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/620096spcred/620096normThe latest News from S&P12/14/2007 3:49:13 PMNews100global620096South AfricaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsTelecommunications & CableNewsLONDON (Standard&Poor's) Dec. 14, 2007—Standard&Poor's Ratings Services said today that it affirmed its 'B' corporate credit rating on South Africa-based emerging markets telecommunications services provider Gateway Telecommunications S.A. (Proprietary) Ltd. (Gateway). At the same time, Standard&Poor's revised its recovery rating on the $132.5 million senior secured notes issued by Gateway Telecommunications PLC (GTP) to '3', indicating meaningful (50%-70%) recovery expectations, from '4'. The issue rating of 'B' was affirmed in line with the corporate credit rating. The ratings were also removed from CreditWatch with negative implications where they were placed on Nov. 15, 2007. The outlook is negative. The affirmation and CreditWatch resolution follows our review of the new satellite pay-TV venture Gateway BroadcastZAFGateway Telecommunications S.A. (Proprietary) Ltd.408118EMERGINGEUROMIDAFRTSYSNEWSGLOBISSCORPTelecommunicationsCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/620097spcred/620097normThe latest Research Update from S&P12/14/2007 3:49:13 PMResearch Update175global620097South AfricaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsTelecommunications & CableResearch UpdateOn Dec. 14, 2007, Standard&Poor's Ratings Services affirmed its 'B' corporate credit rating on South Africa-based emerging markets telecommunications services provider Gateway Telecommunications S.A. (Proprietary) Ltd. (Gateway). At the same time, Standard&Poor's revised its recovery rating on the $132.5 million senior secured notes issued by Gateway Telecommunications PLC (GTP) to '3', indicating meaningful (50%-70%) recovery expectations, from '4'. The issue rating of 'B' was affirmed in line with the corporate credit rating. The ratings were also removed from CreditWatch with negative implications where they were placed on Nov. 15, 2007. The outlook is negative. The affirmation and CreditWatch resolution follows our review of the new satellite pay-TV venture Gateway Broadcast Services Ltd. (GBS), which is 63.5%-ownedZAFGateway Telecommunications S.A. (Proprietary) Ltd.408118EMERGINGEUROMIDAFRTSYSRESUPDGLOBISSCORPTelecommunicationsCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/613504spcred/613504normThe latest News from S&P11/15/2007 3:44:31 PMNews100global613504South AfricaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsTelecommunications & CableNewsLONDON (Standard&Poor's) Nov. 15, 2007--Standard&Poor's Rating Services said today it placed all its ratings, including its 'B' long-term corporate credit rating, on South Africa-based emerging markets telecommunications services provider Gateway Telecommunications S.A. (Proprietary) Ltd. (Gateway) on CreditWatch with negative implications. The recovery rating of 4 on the $132.5 million secured notes is unchanged. "The CreditWatch placement reflects the potential demands on Gateway as a result of the funding of its new pay-TV venture," said Standard&Poor's credit analyst Karim Nadji. "It also takes into account the likely material change to the group's the business mix, which is underpinned by the sound performance and cash generation of the telecommunications business." The TV distribution business at 63.5%-ownedZAFGateway Telecommunications S.A. (Proprietary) Ltd.408118EMERGINGEUROMIDAFRTSYSNEWSGLOBISSCORPTelecommunicationsCredit & Investment ResearchS&P Credit Researchhttp://www.alacrastore.com/storecontent/spcred/613505spcred/613505normThe latest Research Update from S&P11/15/2007 3:44:31 PMResearch Update175global613505South AfricaEmerging MarketsEurope, Middle East, AfricaGlobal IssuersCorporationsTelecommunications & CableResearch UpdateOn Nov. 15, 2007, Standard&Poor's Rating Services placed all its ratings, including its 'B' long-term corporate credit rating, on South Africa-based emerging markets telecommunications services provider Gateway Telecommunications S.A. (Proprietary) Ltd. (Gateway) on CreditWatch with negative implications. The recovery rating of 4 on the $132.5 million secured notes is unchanged. The CreditWatch placement reflects the potential demands on Gateway as a result of the funding of its new pay-TV venture. It also takes into account the likely material change to the group's the business mix, which is underpinned by the sound performance and cash generation of the telecommunications business. The TV distribution business at 63.5%-owned unrestricted subsidiary Gateway Broadcast Services Limited (GBS) is to address strong consumer demand,ZAFGateway Telecommunications S.A. (Proprietary) Ltd.408118EMERGINGEUROMIDAFRTSYSRESUPDGLOBISSCORPTelecommunicationsCredit & Investment ResearchS&P Credit Research