Sept 13, Colombo: Fitch Ratings has affirmed Sri Lanka's Sri Lanka's largest telecommunications service provider Dialog Axiata an 'AAA(lka)' National Long-Term rating at a Stable Outlook.
Dialog, a subsidiary of Axiata Group Berhad of Malaysia and Dialog with a market capitalization of Rs. 65.9 billion, is the market leader in domestic mobile telecommunications with a subscriber market share of 38% at end-March 2013.
Parent support from Axiata Group Berhad of Malaysia, both during the normal course of business and during periods of financial stress, is a key rating driver for Fitch to affirm the 'AAA' rating.
The expectation that Dialog's capital expenditure (capex) to remain high at between 30% and 40% of projected revenue in 2013 and 2014, mostly for expanding its data capacity and quality is another rating driver for Fitch to affirm the current rating and stable outlook.
The full rating release issued by Fitch can be found here.