MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it
affirmed its 'BBB' long-term foreign currency corporate credit rating on Telkom
S.A. Ltd. after the South African telecom services provider announced full-year
results that were in line with expectations.
The outlook on the ratings is positive.
S&P noted that Telkom's 50 percent-owned mobile arm Vodacom Group (Pty) Ltd.
continued its strong performance, boosting the group's results.
At the same time, S&P assigned its 'BBB' long-term local currency corporate
credit rating to Telkom.
The ratings also factor in the group's leading positions in all segments of
the South African telecom market, conservative financial policy -- including and
excluding Vodacom -- and strong free operating cash flow profile, the ratings
agency said.
However, the ratings are constrained by the lack of visibility on Telkom's
mobile strategy, increasing competitive and regulatory pressure, and exposure to
the challenges of operating in South Africa, it added.
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