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Ratings agency Moody's Investors Service has affirmed telecommunications group Telkom's corporate family rating of Ba2 and downgraded its national scale rating (NSR) to Aa2.za from Aa1.za. The outlook on all ratings remains stable.
The NSR downgrade is reflective of Telkom's weakly positioned Ba2 rating in comparison to similar rated South African companies.
Moody's also affirmed Telkom's baseline credit assessment at Ba2, which is supported by its leading market position in South Africa's fixed-line business and operator of the largest fibre network, and adequate financial policies.
The ratings action reflects the agency's expectation that Telkom's credit metrics will recover over the next 12 to 18 months to levels that Moody's deems adequate for its Ba2 rating.