Singtel, Credit Ratings

Singtel, Credit Ratings

Moody's restores Singtel's 'stable' ratings outlook

Moody's restores Singtel's 'stable' ratings outlook

27/1/2021 2:15:00 PM

Moody's restores Singtel 's 'stable' ratings outlook

SINGTEL'S ratings outlook has been restored to 'stable' by Moody's Investors Service, on analysts' hopes that lower shareholder returns will improve leverage. Read more at The Business Times.

SINGTEL'S ratings outlook has been restored to"stable" by Moody's Investors Service, on analysts' hopes that lower shareholder returns will improve leverage.The upgrade by the credit ratings agency on Wednesday came nearly two years after it cut the outlook to"negative" in March 2019. Moody's had pointed to the mainboard-listed telco's net debt-to-earnings before interest, tax, depreciation and amortisation (Ebitda) ratio at the time.

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The latest revision reflects expectations that Singtel will remain the market leader in Singapore, even as digitalisation and business diversification should result in"a stable business and financial profile" in the next two to three years, Moody's said.

Moody's senior analyst Nidhi Dhruv added:"The change in outlook to 'stable' from 'negative' reflects our expectation that reduced shareholder returns and the adoption of scrip dividend will help lower leverage to 2.4 times to 2.5 times over the next two years, from 2.6 times for the last 12 months ended Sept 2020." headtopics.com

Singtel shareholders voted to approve a scrip dividend scheme last July. Read more: The Business Times »

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