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Telkom has welcomed the decision by S&P Global to affirm the company’s credit rating at BBB-.
Group CEO Sipho Maseko says the decision was a nod to the aggressive implementation of Telkom’s turn-around strategy.
“We embarked on our turnaround strategy almost four years ago and in these trying times it is imperative that we maintain our focus. We will continue to actively manage our costs, our cash and our use of capital, in the most efficient manner possible,” he says.
Maseko adds that Telkom will continue on its path, despite the revision of its outlook to negative. The group will be reviewing all its forward resource allocation to ensure effective prioritisation, along with the pursuit of a sustainable business.
“While we welcome the maintenance of our current rating we’re also cognisant that we don’t exist as an island. At this time, it is imperative that our national focus is shifted to shaping an effective way forward,” Maseko says.
“The downgrade of the sovereign will potentially affect the economy at large and the country needs to pull together more than ever before. In the immediate term the focus should be to avoid a recession. Collaboration between government, business, labour and civil society will be vital to evolve a new growth framework to take the country forward,” he adds.