Moody's downgrades Telkom

Moody's Investors Service said it downgraded the senior unsecured issuer rating of Telkom SA Ltd. to Baa2 from Baa1 and the national scale long-term issuer rating to A2.za from A1.za.

The outlook is stable.

"The one-notch downgrade reflects Telkom's difficulties and delays experienced so far in stabilizing its business as part of its focus toward expanding as an integrated telecommunications service provider, as evidenced by its weaker operating performance over the past 12-18 months, leading to a declining operating margin trend," Moody's vice president and senior analyst Soummo Mukherjee said in a news release.

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