May 05, Colombo: Fitch Ratings today affirmed Dialog Telekom's National Long-term rating at 'AAA(lka)' and the outlook of the company as ‘stable’.

Fitch has also affirmed the rating on DIAL's outstanding preference shares of Rs. 5 billion at 'AA+(lka)'.

In Fitch's view, DIAL’s credit metrics are likely to weaken due to its proposed debt-funded expansion, intensifying competition among local mobile operators, and macroeconomic cost pressures. However, the affirmation is driven by the implied support deemed to be available from Dialog's largest shareholder, Telekom Malaysia International Berhad Group (TMI), which owns 83.15 per cent of Dialog's equity.

The rating also factors in Dialog's leading position in Sri Lanka's mobile telecommunication landscape at present, and its continued strong operating cash flow generation.