On The Money - In Brief

Mergers, Acquisitions and Financial Results

- Standard & Poor"s yesterday upgraded Telkom"s foreign currency long-term corporate credit rating to BBB from BBB-, with a stable outlook. The upgrade reflects Telkom"s sustained strong cash generation, materially reduced leverage, conservative financial policy, and improved operating performance.

Standard & Poor"s believes to find increasing competition manageable in the near term given its market dominance and current exposure to the mobile and value added data service providers. Standard & Poor"s expects Telkom"s focus on continued operating efficiencies, sustained cash generation, and conservative balance sheet management to be sufficient to mitigate the risks associated with the developing regulatory and competitive environment.

Standard & Poor"s does not factor any South African Government"s support into Telkom"s rating.