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More Africa NewsTelkom downgraded by Moody’s in line with South Africa sovereign rating, outlook negative

April 9, 2020by myles0
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Moody’s Investors Service has downgraded operator Telkom South Africa in line with the country’s recent sovereign rating downgrade. Telkom said that Moody’s had downgraded its rating to Ba1 from Baa3 with a negative outlook. This follows Moody’s recent decision to downgrade the South African sovereign rating. Telkom’s rating is linked to the sovereign one because the government holds a 40.5 percent stake in Telkom.

Telkom said that Moody’s indicated that the rating reflected the operator’s “overall strong credit metrics, which provide adequate headroom to the company’s operating and competitive challenges”. The company has adequate levels of liquidity over the next twelve to eighteen months with flexibility and sufficient levers to manage its cash-flows.

Source: Telecompaper.com

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