TELKOM SA SOC LIMITED - Amendment to Telkoms Credit Rating by S&P

Amendment to Telkom’s Credit Rating by S&P

Telkom SA SOC Limited
(Incorporated in the Republic of South Africa)
(Registration number 1991/005476/30)
JSE Bond code: BITEL
("Telkom" or "the Company")


Amendment to Telkom’s Credit Rating by S&P


In accordance with paragraph 4.27 of the JSE Debt Listings
Requirements, noteholders are hereby advised of the amendment to
Telkom’s credit rating following the sovereign downgrade.

S&P Global Ratings (“S&P”) lowered its long-term corporate
credit rating on Telkom to 'BB+' from 'BBB-'. The outlook is
stable.

The downgrade of Telkom follows S&P’s downgrade of South
Africa’s foreign currency long-term sovereign credit rating on
24 November 2017.

Telkom is at risk from the suppressed economic growth and
business / consumer confidence in South Africa, being the
primary market from which its revenue is derived. However,
Telkom's solid business and financial risk profiles and adequate
liquidity help maintain its stand-alone credit quality.

The stable outlook reflects the stable outlook on South Africa,
and incorporates S&P’s expectation of weaker market conditions
for Telkom. The stable outlook also recognizes S&P’s expectation
that the Company's liquidity will remain at an adequate level.


Johannesburg
6 December 2017

Debt Sponsor
The Standard Bank of South Africa Limited

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