Telkom’s credit rating has been downgraded by Moody’s Investors Service, the company announced in a statement to shareholders.<\/p>\n
This follows after South Africa’s credit rating moved deeper into junk earlier this month<\/strong><\/a>.<\/p>\n Telkom said the Moody’s decision to downgrade its rating was a consequence of this.<\/p>\n “Moody\u2019s Investors Service has downgraded Telkom\u2019s corporate family rating to Ba2 from Ba1 with a negative outlook,” Telkom said.<\/p>\n “The rating downgrade is a direct consequence of the rating action Moody\u2019s took on 20 November 2020, to downgrade the South African sovereign rating by one notch to Ba2 with a negative outlook.”<\/p>\n “Telkom\u2019s operations and revenues are concentrated in South Africa, and as a result, its credit rating is highly correlated to the country\u2019s economic environment,” the company said.<\/p>\n Despite the downgrade, Moody’s acknowledged Telkom’s relatively strong credit performance and liquidity.<\/p>\n “Moody\u2019s notes the company\u2019s strong credit metrics and good liquidity and will monitor Telkom\u2019s performance given the prevailing economic conditions,” Telkom said.<\/p>\n This credit rating downgrade follows after Telkom disclosed<\/strong><\/a> that CEO Sipho Maseko sold over R6.2-million worth of Telkom shares.<\/p>\n The disposal was announced on the JSE\u2019s Stock Exchange News Service as is required by sections 3.63 to 3.65 of the JSE\u2019s Listing Requirements document.<\/p>\n Maseko disposed of 87,505 shares at an average price of R32.62 on 12 November 2020, as well as 104,500 shares at an average price of R32.73 on 13 November 2020.<\/p>\n These two disposals total R6,274,552.05, and followed the vesting of options in terms of the company\u2019s share scheme.<\/p>\n \u201cThe above transactions were done on market. Clearance to deal was received in terms of paragraph 3.66 of the Listings Requirements,\u201d said Telkom.<\/p>\n Shortly after Maseko, Telkom CFO Tsholofelo Molefe sold 82,569 shares to the value of R2.759 million.<\/p>\n Telkom’s credit rating has been downgraded by Moody’s Investors Service, the company announced in a statement to shareholders.<\/p>\n","protected":false},"author":341028,"featured_media":307598,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41906],"tags":[35,42462,7543,109],"class_list":["post-378080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-telecoms","tag-headline","tag-junk-rating","tag-moodys","tag-telkom"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/378080"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341028"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=378080"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/378080\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/307598"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=378080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=378080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=378080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Telkom CEO share disposal<\/h3>\n
Now read: Telkom reveals Black Friday sale<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"