Moody's gives SingTel notes Aa2

Moody's Investors Service said it assigned a Aa2 rating to the S$600 million of notes issued by SingTel Group Treasury under the unconditional and irrevocable guarantee of Singapore Telecommunications Ltd.

The agency said that the 3.4875% 10-year semiannual notes are senior unsecured and will rank pari passu to all other unsecured obligations.

The outlook is stable.

Moody's said it anticipated that the company will use proceeds from the debt offering to repay outstanding indebtedness.

As a result, the agency said it expects the transaction will be essentially leverage neutral and will have minimal impact on SingTel's total outstanding debt and adjusted debt-to-EBITDA leverage ratio.

"We believe the prospective issuance enhances the company's debt maturity profile and positively impacts SingTel's already-robust liquidity position," said Laura Acres, a Moody's vice president - senior credit officer and lead analyst for SingTel.

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