Fitch: Telekom Malaysia unchanged

Fitch Ratings said it commented that the A- long-term issuer default rating and instrument ratings assigned to Telekom Malaysia Bhd. and its dollar bonds are unlikely to change as a consequence of the company's announcement that it is pursuing a de-merger of its mobile and fixed line telecom businesses.

The outlook remains stable.

The agency said that the company's intention is to undertake a restructuring that will segregate all of its mobile telecom and non-Malaysian businesses into a new company under the ownership of TM International Sdn Bhd., leaving the fixed line, data and broadband services and other telecom and non-telecom related businesses in a separate company that will remain listed as Telekom Malaysia on the Malaysian stock exchange.

Going forward, Fitch said its ratings on Telekom Malaysia and its $1.7 billion of outstanding securities will relate to the FixedCo entity, which will be the successor company to Telekom Malaysia and will assume Telekom Malaysia's existing public debt liabilities.

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