Kazakhtelecom announces updated ratings from Fitch Ratings and S&P Global Ratings

06.02.25 15:33
/KASE, February 6, 2025/ – Kazakhtelecom JSC (KASE ticker – KZTK) has announced the following: quote Kazakhtelecom continues its strategic development and adaptation to market changes, as reflected in the updated assessments from international rating agencies Fitch Ratings and S&P Global Ratings. Their conclusions have sparked active discussions among investors and analysts, reaffirming the company's key role in Kazakhstan's telecommunications sector. Fitch Ratings has affirmed company's long-term credit rating at "BBB-" with a "Stable" outlook. The agency highlights the company's resilient business model, ability to generate free cash flow, and adaptability to market challenges. Strong positions in fixed-line communications and active investments in digital transformation, including the development of 5G networks and cloud technologies, were also noted. S&P Global Ratings downgraded the company's rating from "BB+" to "BB" with a "Negative" outlook, citing the financial impact of selling its mobile asset, Mobile Telecom Service LLP (brands Tele2/Altel). The temporary decline in EBITDA and profitability is considered a short-term effect, with recovery expected by 2027. unquote Press release in Russian – https://kase.kz/files/emitters/KZTK/kztk_relizs_060225_1.pdf Press release in English – https://kase.kz/files/emitters/KZTK/kztk_relizs_060225_en.pdf [2025-02-06]