Moody's: Axiata view to positive

Moody's Investors Service said it changed to positive from stable the outlook on the Baa2 issuer rating and senior unsecured bond rating of Axiata Group Bhd.

The change in outlook reflects Axiata's strengthening financial metrics and operating profile, driven by an improved performance across substantially all of its cellular subsidiaries across the region, particularly PT XL Axiata Tbk, Moody's said.

The rating combines the company's baseline credit assessment of 10 and one-notch uplift resulting from parental support that Moody's said it believes the government of Malaysia is likely to provide in a distress situation.

The ratings are underpinned by the stable cash flows generated from its wholly-owned subsidiary in Malaysia, Celcom, which enjoys a well established market position, healthy margins and returns and is currently moderately geared, the agency said.

Despite Axiata's relatively strong financial profile with consolidated adjusted debt-to-EBITDA ratio of 1.8x, concerns exist regarding emerging market risk, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.