Fitch affirms Dialog Axiata at ‘AAA(lka)’; Outlook stable

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

The affirmation and Stable Outlook reflect Fitch’s view that Dialog will be able to maintain a credit profile commensurate with a ‘AAA(lka)’ rating in the next 12-18 months, despite lower demand for telecom services, escalating costs and a significant increase in the company’s debt amid the Sri Lankan rupee’s devaluation.

Dialog’s rating is driven by its Standalone Credit Profile (SCP) of ‘aaa(lka)’, which reflects its market leadership across mobile, pay-TV and home-broadband (HBB) segments, better execution and network capability and a solid financial profile, offset to an extent by the high exposure of its revenue to the weak Sri Lankan market.