KUALA LUMPUR: Moody’s Investors Service has affirmed Axiata Group Bhd
’s Baa2 issuer rating and baa3 baseline credit assessment.
The rating agency said it has also affirmed the provisional (P) Baa2 senior unsecured ratings on the sukuk issuance programme established by Axiata SPV2 Bhd and the medium-term note programme established by Axiata SPV5 (Labuan) Ltd, as well as the Baa2 rating on all backed senior unsecured notes issued by the two entities, which are wholly-owned subsidiaries of Axiata.
Moody’s has also maintained the “stable” outlook on all ratings.
Moody’s vice-president and senior credit officer Nidhi Dhruv said the affirmation of Axiata’s ratings reflects the company’s strong market positions in all its operating markets and Moody’s expectation that its leverage will trend below three times by 2025, as Axiata continues to use excess cash from the sale of its stakes in subsidiaries to pare down debt.
“The rating also incorporates Axiata’s increasingly complex group structure, given the deconsolidation of CelcomDigi Bhd and the proposed deconsolidation of edotco Group Sdn Bhd.
“The changes in group structure also elevate Axiata’s exposure to frontier market risks, which now account for over 35% of consolidated earnings before interest, taxes, depreciation, and amortisation (ebitda) for the nine months ended Sept 30, 2023,” she said in a statement.
Dhruv, who is also Moody’s lead analyst for Axiata, said the rating agency expects Axiata’s revenue to grow 5% to 6% on a constant currency basis over the years ending Dec 31, 2024 and 2025. — Bernama
