KUALA LUMPUR, Dec 13 — Moody’s Investors Service has affirmed Telekom Malaysia Bhd’s ™ A3 issuer and senior unsecured rating, as well as the (P)A3 rating on TM’s wholly-owned finance subsidiary Tulip Maple Bhd’s US$750 million (US$1=RM4.21) senior unsecured multicurrency sukuk issuance programme, with stable outlook.

In a statement today, Moody’s said it has also affirmed TM’s Baseline Credit Assessment (BCA) of baa1.

Moody’s vice-president and senior analyst Nidhi Dhruv said TM saw a turnaround in revenues across all its business segments since the fourth quarter of 2020, as consumer data consumption and bandwidth demand from other telecom providers rose amid the pandemic, leading to an acceleration in TM’s data and lease segment.

Meanwhile, Moody’s said the baa1 BCA reflects TM’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.

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“Moody’s expects TM to grow its revenues by 3.0-3.5 per cent in the fiscal year 2022 and around 2.5 per cent in 2023. This follows declines in revenue since the fiscal year 2019 on the back of declining voice usage and revenues, regulatory restrictions on broadband pricing, and a more competitive operating environment

“On a fundamental basis, Moody’s expects the company to continue delivering on its business model and that broadband revenue growth will help offset the structural decline in its traditional voice-based segment,” it said. — Bernama