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Moody's keeps eye on Telkom

Oct 30 2009 08:02 Amanda Visser

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Pretoria - Credit rating agency Moody's said it was unaware of Telkom's latest competition problems when it rated the telecommunications giant earlier this month.

The agency issued a statement that it would be watching the situation closely.

It is understood that Telkom is disputing the Competition Commission's finding, which involves a possible massive fine on this year's turnover.

If the fine now proposed is confirmed, this will put further "negative pressure" on Telkom's rating. The prospect for the rating is negative.

Telkom confirmed that it would seriously contest the charges against it before the Competition Tribunal.

Anton Klopper, head of the telecommunications giant's legal division, says they received the documents only this week and the possibility that a settlement might be reached cannot be excluded.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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