Fitch: Kaztel view to negative

Fitch Ratings said it revised the outlook on Kazakhtelecom JSC's (Kaztel) to negative from stable.

The agency also affirmed the issuer default rating at BB, short-term issuer default rating at B, local-currency long-term issuer default rating at BB, national long-term rating at A(kaz), senior unsecured debt in foreign-currency at BB and senior unsecured debt in local-currency at A(kaz).

Kaztel is a strong fixed-line incumbent with a near monopoly position in the traditional telephony and high broadband market share operating in a benign regulatory environment, Fitch said.

The outlook revision is driven by the company's ambitions to re-enter the mobile segment, the agency said.

Those mobile ambitions may dilute operating strengths and push the gross leverage above the downgrade threshold identified as 2.5x gross debt-to-EBITDA ratio, Fitch said.

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