Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers T > Headlines for Telekom Malaysia Bhd. > News item |
Moody's rates Telekom Malaysia A2
Moody's Investors Service said it assigned an A2 local-currency issuer rating to Telekom Malaysia and downgraded its foreign-currency bond rating to A3 from A2.
The outlook is stable. This concludes the review that began on Sept. 28 and reflects the recently approved de-merger of the company's domestic fixed-line and broadband business from its domestic and overseas cellular operations.
"The A2 rating reflects [the company's] virtual monopoly position as the sole provider of fixed line telecommunications services in Malaysia coupled with its strong financial profile supported by low leverage, sound debt maturity profile and balanced liquidity needs post de-merger," Laura Acres, a Moody's vice president, said in a written statement.
Concerns are the degree of concentration from a monocular business model in a single market, the lack of growth potential in the traditional fixed-line business and potential execution risk for the broadband project with the government, the agency said.
Ratings could be downgraded if the issuer's adjusted debt-to-EBITDA ratio were to rise above 2 times, Moody's said.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.