Moody’s cuts Telekom Malaysia BCA to baa1

Moody's Investors Service said it affirmed Telekom Malaysia Bhd.’s (TMB) A3 issuer and senior unsecured ratings, as well as the provisional A3 rating on Tulip Maple Bhd.’s $750 million multicurrency sukuk issuance program.

At the same time, the agency lowered Telekom Malaysia’s baseline credit assessment to baa1 from a3.

The outlook is stable.

"The lowering of the BCA to baa1 from a3 reflects our expectation that TMB's credit metrics – which have weakened on the back of lower revenues across voice and data, higher operating costs and elevated capex – are unlikely to recover over the near term to levels appropriate for an a3 BCA," Moody's vice president and senior credit officer Annalisa DiChiara said in a news release.

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