Moody has downgraded Telkom South Africa's corporate family rating to Ba2 from Ba1 with a negative outlook. The rating downgrade is a direct consequence of the rating action Moody's took on 20 November to downgrade the South African sovereign rating by one notch to Ba2 with a negative outlook.
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. Moody's notes the company's strong credit metrics and good liquidity and will monitor Telkom's performance given the prevailing economic conditions.
Moody's also assigned a corporate family national scale rating (NSR) of Aa1.za.
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