Fitch Affirms Dialog Axiata at ‘AAA(lka)’/Stable | Daily News

Fitch Affirms Dialog Axiata at ‘AAA(lka)’/Stable

Fitch Ratings has affirmed the National Long-Term Rating of Sri Lanka-based telecoms company Dialog Axiata PLC at ‘AAA(lka)’. The Outlook is Stable.

Dialog’s stand alone credit profile of ‘AAA(lka)’ is underpinned by its market leadership in the growing mobile and pay-TV market segments. “We believe that Dialog is in a position to gain revenue market share from smaller telcos, given its superior execution and mobile networks” Fitch said.

“We believe that Dialog could receive support from its 83%-parent, Axiata Group Berhad (Axiata) of Malaysia, if its standalone credit profile were to weaken”. “Under Fitch’s parent-subsidiary linkage criteria, we assess the relationship between Axiata and Dialog as one of a “strong parent, weaker subsidiary and moderate linkages”.

The linkages include sharing key management personnel, a common name and common creditors, which could result in reputational risk to Axiata should Dialog fail.

“The company has a solid financial profile, with industry-leading revenue growth, a stable operating EBITDAR margin of 37%-38%.


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