Saturday, May 7, 2011

TM’s Islamic Debt on Stable Outlook

Friday April 22, 2011


PETALING JAYA: Telekom Malaysia Bhd’s (TM) proposed RM2bil Islamic commercial papers programme and Islamic medium term notes programme has been respectively assigned a final short and long term ratings of P1 and AAA by RAM Ratings.

The long term rating has been given a stable outlook.

This reflects TM’s strong credit and financial profiles, which were underpinned by the company’s strategic importance as the national telecommunications company, the rating arm of RAM Holdings Bhd said in a press release yesterday.

RAM Ratings noted that the company’s financial position was characterised by relatively stable revenue and cashflow as well as strong debt-coverage levels.

Even assuming a full drawdown of the debt facilities by 2012, the rating agency said TM’s debt-servicing ability would remain intact over the next two years.

“However, the additional borrowings will affect TM’s balance sheet (on a pro-forma basis); its gearing ratio is envisaged to peak at 1.12 times by end-2012 (with RM7.53bil debt load), from 0.7 times (and RM5.53bil of debt) as at end-2010, before tapering off thereafter,” RAM Ratings said.

http://biz.thestar.com.my/news/story.asp?file=/2011/4/22/business/8533783&sec=business

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