S&P downgrades Telkom’s rating

Telkom received a downgrading by rating agency Standard & Poor’s (S&P) yesterday. The agency downgraded Telkom’s long-term rating from BBB to BBB- citing its current business problems and poor profitability. “We think the continued decline in fixed line and losses in mobile will result in further profit erosion.” S&P said. Its view was based on the ongoing fixed-to-mobile substitution trend and rising pricing pressures from mounting competition. – Sapa