Moody's
Rating Action: Moody's affirms Telekom Malaysia Berhad's A3 ratings; outlook stableGlobal Credit Research - 13 Dec 2021Singapore, December 13, 2021 -- Moody's Investors Service has affirmed Telekom Malaysia Berhad's (TMB) A3 issuer and senior unsecured rating, as well as the (P)A3 rating on TMB's wholly owned finance subsidiary, Tulip Maple Berhad's USD750 million senior unsecured multicurrency sukuk issuance program.The outlook on all ratings is stable.Moody's has also affirmed TMB's Baseline Credit Assessment (BCA) of baa1. TMB's A3 rating incorporates (1) the company's BCA of baa1; and (2) the expected extraordinary support from the Government of Malaysia (A3 stable), given the company's close links with the government, which results in a one-notch uplift to the BCA."TMB saw a turnaround in revenues across all its business segments since Q4 2020, as consumer data consumption and bandwidth demand from other telecom providers rose amid the pandemic, leading to an acceleration in TMB's data and lease segment," says Nidhi Dhruv, a Moody's Vice President and Senior Analyst.RATINGS RATIONALEThe baa1 BCA reflects TMB's position as the leading provider of fixed-line services and the largest broadband telecommunications service provider in Malaysia, as well as its relatively strong cash flow, sound debt maturity profile and balanced liquidity needs.Moody's expects TMB to grow its revenues by 3.0%-3.5% in fiscal 2022 and around 2.5% in 2023.
