Spectrum costs will dial up debt for some Apac telcos, including Malaysia

KUALA LUMPUR: The ratings of Asia-Pacific (APAC) telecommunications companies (telcos) in emerging markets can tolerate increased deferred spectrum liabilities at current levels if these essential costs are the main driver of high debt or weaker leverage, Moody's Investors Service said in a report.

"Deferred spectrum liabilities are distinct from bank or capital market debt and are not subject to refinancing. Moreover, in exceptional circumstances, governments are likely to provide more payment buffers, which can alleviate cash flow pressure for some telcos," Moody's vice-president and senior analyst Nidhi Dhruv said.