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S&P revises Telkom credit rating following sovereign rating

30th May 2022

By: Creamer Media Reporter

     

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S&P Global Ratings (S&P) has revised Telkom’s outlook to positive from stable and affirmed its foreign and local currency rating of BB.

This followed S&P’s revision of South Africa’s foreign and local currency ratings to positive from stable.

“The ratings action on the sovereign came as a result of improved terms of trade which continue to support South Africa’s external sector performance,” Telkom said in an update to shareholders.

“Since the South African government owns about 40% of Telkom, S&P considers Telkom a government-related entity. The revision in Telkom’s outlook is as a result of the outlook action taken on the government.”

Telkom also passed S&P’s stress test to qualify in having its standalone credit profile (SACP) rating higher than the sovereign.

The SACP rating was affirmed at ‘bbb-‘ limited to one notch above the foreign currency rating of government.

Edited by Creamer Media Reporter

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