Dow Jones Newswires: Fitch Assigns Long-Term AA- Rtg To Telstra
June 6, 2001
Dow Jones Newswires
SYDNEY -- International rating agency Fitch Inc. said Wednesday it has assigned a long-term rating of AA- and a short-term rating of F1+ to Telstra Corp (TLS), Australia's largest telecommunications company.
The outlook is stable, Fitch said.
The ratings reflect Telstra's powerful market position as Australia's leading provider of telecom services and a sound capital structure and financial position, the ratings agency said.
Fitch said that in Australia, Telstra maintains strong, albeit declining, positions in its mature, traditional fixed-line markets, and also in new high-growth markets such as mobile, data and Internet services.
"Telstra is well-placed to fend off competition in its traditional markets through, amongst other measures, its capacity to bundle services," Fitch said.
While Telstra's capital structure remains fettered by its 50.1% government shareholding, these concerns are mitigated by the company's strong internal capacity to generate capital, it said.
Having made a significant entry into Asia through its joint ventures with Hong Kong-based Pacific Century CyberWorks Ltd. (PCW), Telstra's future Asian expansion will be more incremental in nature, rather than by way of further "foundation-stone" investments, Fitch said.
-By Rebecca Thurlow, Dow Jones Newswires;
61-2-8235-2959; rebecca.thurlow@dowjones.com
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