TLKM – Moody’s revises outlook to neutral; Affirms Baa1

TLKM – Moody’s revises outlook to neutral; Affirms Baa1 Moody’s revised PT Telkom Indonesia Tbk (TLKM)’s outlook to neutral from stable, inline with Indonesia’s sovereign outlook, while affirming the company’s rating of Baa1. TLKM’s credit profile remains underpinned by its dominant position as Indonesia’s largest integrated telecommunications operator, strong cash generation, conservative leverage, and very solid liquidity. However, the neutral outlook reflects TLKM’s exposure to sovereign-linked risks, including potential policy intervention stemming from its SOE status and its relatively smaller scale compared with global telecom peers. Absent a stabilisation in the sovereign outlook, rating upside for TLKM is unlikely, while any deterioration in sovereign credit quality or weakening in TLKM’s financial metrics could exert downward pressure on the rating. (Source: Bisnis)