By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
A government minister yesterday slammed Moody’s for being “uninformed” on the Government’s policy for regaining majority ownership of the Bahamas Telecommunications Company (BTC), adding that the administration would “lay all of the cards on the table” with the Wall Street credit rating agency next week.
Michael Halkitis, minister of state for finance, said he was disturbed by Moody’s recent assessments of the Government’s campaign to regain majority control of BTC, adding that it had not spoken to the Government to understand its policy approach before expressing its opinions.
The ratings agency has criticised the Christie administration’s plans to regain majority control of BTC as “negative” for this nation’s sovereign credit rating, and slammed the Government’s “policy approach as “erratic” and undermining this nation’s investment climate.
“It’s unfortunate that we have an opinion on the Government’s mortgage relief plan and the Government attempt to reacquire the majority shares in BTC without having the opportunity to speak with the analyst and let them know what our position is,” Mr Halkitis said.
“We have reached out to them since they didn’t come to us before they wrote their opinion. We are arranging a teleconference with them early next week to just put the facts on the table. It has come to our attention that this analyst writing these opinions is a new analyst. This person is new on the scene, recently joined Moody’s, and so there has not been that communication.”
Mr Halkitis said he was disturbed by the fact that the opinions being expressed by Moody’s were not informed by facts, and contrasted its approach to fellow Wall Street ratings agency Standard & Poor’s(S&P).
“It creates some apprehension with the public and we just want an opportunity to put the facts on the table and answer any questions the analyst might have,” he added.
“That’s the way all the other rating agencies do things. Last week, Standard & Poor’s were here. They met with leading members of the business community, they met with the opposition and they met with us. We told told them what our economic policies are and they are going to go away now and write their report.
“We don’t expect for an agency of the reputation of Moody’s to be in a situation where uniformed opinions are being published. It’s not that we are not willing to have the information out there, but if you want to comment on government policy it would be nice to get a report from the Government on their policies and what they intend to do. We want to be able put our cards on the table, so to speak.”
Mr Halkitis said it would be “premature” to put a figure on how much it would cost the Government to reacquire 2 per cent of BTC’s equity to take it to 51 per cent.
Regarding concerns over the cost, Mr Halkitis said he found it interesting that in a recent article Moody’s was reported as saying that the Government would be using scarce resources to gain a controlling interest in BTC, yet the rating agency also noted it should not cost the Gvernment too much.
“What is it?” he asked. “Are we going to be using scarce resources or is it going to cost us too much, which is it?
“Yesterday in the papers he was saying he doesn’t understand why we want to acquire it because it’s a money making entity. Well I would think you would want to acquire something that is a money making issue.
“We want to solve the issue of opinions being expressed in the absence of the Government being given an opportunity to to explain its policy and what it is we intend to do. If having done that the author maintains his opinion, then fine but we just think the process was flawed.”
Comments
proudloudandfnm 11 years, 8 months ago
Hmmm let's see. CWC owns majority shares, deal is done, 100 million in dividendes paid to the Bahamas this year.
No right thinking company would ever settle for minority shares with a government in control, that is what is known as BAD BUSINESS.
When it comes down to it CWC will not accpet a minority stake with the Bahamian government in control of their investment.
Bottom line?
The PLP will have to buy back the entire thing, at a much higher price of course since CWC showed the largest profit in BTC's history.
The PLP are simply pandering to the ignorant in our society. They will never be able to simply buy back 2-3%. They will have to buy the entire thing back and probably for about a billion.
So it aint gonna happen folks, we cannot afford to buy all of BTC back.
Mayaguana34 11 years, 8 months ago
It would be great that the cards are also laid on the table for the Bahamian people as well - Answering Moody but have not answered the questions raised by your citizens ? go figure! What again is the rational for this nationalization? Its a step in the wrong direction - Goes against all best practice and conflicts with the commitments we have made in our international trade agreements and contrary to the others we seek to join - We need to strengthen the regulator to ensure better service and competitive prices and open this market to competition to give Bahamians the choice in provider and lower prices - Liberalize not nationalize - #wrongdirection The minority shares and the fact that the asset is here provides us with leverage and if we want access to the 'backbone' for e-medicine - e-learning or any other facility we can certainly get that access - It is certain that CWC will not cede management control - So please tell us again ....slowly ...why?
242 11 years, 8 months ago
He want it back to have the power to hire 500 plp supporters and brag bout how much jobs he create..........who on earth would be angry when you making more money as 49% owner than when you were 100% owner. And what company would invest all that money and then downgrade themself to be minority owner. PM Christie claim he want it back in the hands of the people but yet refuse to offer the people shares in the company....wow how does that make sense? Ask a plp how does that make sense...apparently the approved plp response(avoiding answering the question of course) is "Ingraham sold BTC to foreigners and that somebody should be jailed for the way it was sold." They all will say it the same way.
concernedcitizen 11 years, 8 months ago
they should tell moody,s we are going to drive the cost down by using the union as our goon squad thru sabotage, then were going to offer them a longer monoply as a minority partner ..in 3 or 4 years CWC will be so happy to leave they will paddle away in dingys ...by that time we will control the private cell market on the new network CWC installed ....come on doesn,t moodys get it lmao
Puzzled 11 years, 8 months ago
So how did the teleconference go Michael Halkitis? We are now past 'early next week' what did they say? Do they understand the appalling civil service habit here of picking up a ringing phone and dropping it back in the cradle. I know it happens it has happened a couple of time right in front of me! No wonder Moody's were unable to get a comment from the current regime when they were phoning for a comment. The writer of the opinion certainly was not new person at Moody's. I know!!! Wake up Bahamas you are being taken for a ride by the incumbents!
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