Moody's downgrades Telkom's credit rating following sovereign rating action

27th November 2020 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

Ratings agency Moody’s Investors Service has downgraded telecommunications group Telkom’s corporate family rating to Ba2, from Ba1, with a negative outlook.

This followed Moody’s downgrading of South Africa’s sovereign rating by one notch to Ba2 with a negative outlook on November 20.

“Telkom’s operations and revenues are concentrated in South Africa, and as a result its credit rating is highly correlated to the country’s economic environment,” Telkom said in a statement to shareholders.

“Moody’s notes the company’s strong credit metrics and good liquidity and will monitor Telkom’s performance given the prevailing economic conditions.”