S&P Global Ratings revises Telkom rating in line with Sovereign Rating Telkom SA SOC Limited (Incorporated in the Republic of South Africa) (Registration number 1991/005476/30) JSE Bond Code: BITEL JSE Share Code: TKG ISIN: ZAE000044897 (“Telkom” or the “company”) S&P GLOBAL RATINGS REVISES TELKOM RATING IN LINE WITH SOVEREIGN RATING On 8 May 2020, S&P Global Ratings (S&P) revised Telkom’s long-term issuer rating to “BB” from “BB+” and ascribed a “stable” outlook from a “negative” outlook. This rating action follows the downgrade of South Africa’s long-term local currency rating on 29 April 2020, from “BB” to “BB-“ with a “stable” outlook. The ratings action on the sovereign came as a result of the potential impact of COVID -19 on the fiscus and the growth outlook. S&P views Telkom as a Government Related Entity (GRE) and this led to this rating action. However, the rating agency has always maintained the low likelihood of negative interventions by Government. It also considers a moderate impact of COVID-19 on Telkom’s financial profile and recognises the company’s modest financial risk. The ascribed stable outlook also takes into account Telkom’s Standalone Credit Profile (SACP) of “bbb-“. 13 May 2020 Debt Sponsor Nedbank Corporate and Investment Banking, a division of Nedbank Limited Date: 13-05-2020 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.