Moody's: Axiata unchanged

Moody's Investors Service said that there is no impact on the Baa2 issuer rating and senior bond rating of Axiata Group Bhd. following the company's recent announcement that it plans on buying back up to 10% of its own shares.

The outlook remains positive.

The proposed buyback, equivalent to 844,515,445 shares, is subject to shareholder approval, the agency said. The purchase will be funded out of surplus internal cash sources after taking into consideration capex and working capital requirements throughout the group.

While the purchase will adversely affect retained cash flow metrics, Moody's said it believes that this can be accommodated within the Baa2 rating given Axiata's relatively strong financial metrics and moderate leverage.

The adjusted consolidated debt-to-EBITDA ratio is 1.7 times.

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