Moody’s lowers Telekom Malaysia view to stable

Moody’s Investors Service said it affirmed Telekom Malaysia Bhd.’s A3 issuer and senior unsecured ratings, along with the provisional A3 rating on Tulip Maple Bhd.’s $750 million multi-currency sukuk issuance program.

The agency also said it changed Telekom Malaysia’s outlook to stable from positive.

The outlook revision follows a similar outlook revision on the government of Malaysia.

The stable outlook reflects the company’s strategic importance to the government, as demonstrated by the government’s high level of ownership and implementation of its high speed broadband initiative, Moody’s said.

The A3 rating does not incorporate any uplift to its baseline credit assessment, largely because its baseline of A3 is equivalent to the A3 sovereign rating, the agency said.

The company’s ratings also consider its dominant position as the leading provider of fixed line services, Moody’s said, as well as its position as the largest broadband telecommunications service provider in the country.

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