Fitch Ratings has affirmed Telecom Namibia Long-term local currency debt rating at 'BBB-' and National Long-term rating of 'A(zaf)'. The Outlooks are Negative.
The affirmation continues to reflect the one notch differential of Telecom Namibia's ratings with those of the Namibian sovereign's local currency debt rating of 'BBB'/Stable. Under Fitch's parent and subsidiary rating linkage methodology, Telecom Namibia has legal, operational and strategic links with the state of Namibia, which has secured Telecom Namibia's debt in the past and provided financial guarantees.
The Negative Outlook signals Fitch's concern that the standalone credit profile is weakening and if this decline is severe, without early indications of support from the government, it may result in a multi-notch widening between Telecom Namibia and the Namibian government to reflect more imminent liquidity concerns.
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