S&P: KT view to negative

Standard & Poor's said it revised the outlook to negative from stable on KT Corp.

The agency also said it affirmed the A long-term corporate credit and senior unsecured debt ratings on the company.

The outlook revision to negative reflects an expectation that a weak operating environment in Korea's telecommunications industry will test KT's operating performance over the next one to two years, S&P said.

The agency said it believes KT will face intensifying competition, uncertain regulatory conditions and continuous declines in revenue in its fixed-line voice business.

Free mobile VoIP (Voice over Internet Protocol) services, such as Kakao Talk's voice talk service, the most popular mobile messenger in Korea, could potentially threaten KT's wireless and fixed-line voice revenues, S&P said.

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