Fitch changes Telekom Malaysia view

Fitch Ratings said it revised Telekom Malaysia Bhd.'s outlook to negative from stable.

The long-term foreign-currency issuer default rating and the senior unsecured rating were affirmed at A-.

The agency said the revision reflects the company’s weakening credit profile, driven by pressure on EBITDA and its continuing high capex and dividend commitments.

“The company's goals for 2018 include flat EBIT and revenue growth of 3.5%-4.0%, suggesting near-term cost pressure,” Fitch said in a news release.

“Consequently, FFO adjusted net leverage is likely to increase to 2.6x-2.7x in 2018-2019 (2017: 2.5x), which may lead to a downgrade should there be a delay in deleveraging.”

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