Telecom Namibia gets BBB credit rating from Fitch

Mergers, Acquisitions and Financial Results

Fitch Ratings yesterday gave Telecom Namibia the credit thumbs-up, affirming its long-term local currency issuer default rating (IDR) at 'BBB-' and national long-term rating at 'A(zaf)', with both ratings getting 'Stable Outlooks'.

In a statement, Fitch said the rating affirmation reflects it continuing expectation of ongoing government support based on Telecom Namibia's strategic importance to the domestic telecoms sector, given its extensive fibre network infrastructure in the domestic market.

"Telecom Namibia's ratings are also supported by the strong operational and strategic ties with the ultimate parent, the Namibian Government ('BBB' LC IDR / Stable)," Fitch said.

"In the light of recent trends and Fitch's revised growth expectations for the Namibian fixed line market, the agency has marginally lowered its expectations for Telecom Namibia's revenue and funds from operations (FFO) in 2010 and 2011. Telecom Namibia remains the dominant player in the local fixed-line telephony market and is supported by its incumbent status, given its emerging retail broadband and wholesale markets," the statement said.