| Wed 21 Jul 2004, 9:44 | | Moody's Upgrades Telkom 's Rating |
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TELKOM SA LIMITED - MOODY`S UPGRADES TELKOM SA LIMITED`S RATING
Telkom SA Limited
(Registration number 1991/005476/06)
JSE and NYSE share code: TKG ISIN: ZAE000044897
(`Telkom`)
Moody`s Upgrades Telkom SA Limited`s Rating
Moody`s yesterday upgraded Telkom`s senior unsecured long term foreign currency
debt rating to Baa1 from Baa3, with a stable outlook. The upgrade reflects
Telkom`s continuing operational progress with further scope for improvement.
Moody`s believes that Telkom will continue to develop its operational cash flow
in the medium term.
Moody`s does not expect the soon-to-be-licensed second network operator to have
an initial major competitive impact, although it may reduce Telkom`s market
share and operating margins, particularly in segments such business customers
and data services. Moody`s however believes a combination of efficiency and
service improvements strongly positions Telkom to meet new competition.
Moody`s does not factor any South African Government`s support into Telkom`s
rating.
Ratings affected by the review are EUR 500 million, 7.125% Eurobonds due on 12
April 2005.
21 July 2004
Johannesburg
All statements contained herein, as well as oral statements that may be made by
us or by officers, directors or employees acting on behalf of the Telkom Group,
that are not statements of historical fact constitute `forward-looking
statements` within the meaning of the US Private Securities Litigation Reform
Act of 1995, specifically Section 21E of the U.S. Securities Exchange Act of
1934, as amended. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors that could cause our actual results to be
materially different from historical results or from any future results
expressed or implied by such forward-looking statements. Among the factors that
could cause our actual results or outcomes to differ materially from our
expectations are those risks identified under the caption `Risk Factors`
contained in item 3 of Telkom`s most recent annual report on Form 20-F filed
with the U.S. Securities Exchange Commission (`SEC`) and our other filings with
the SEC, available on Telkom`s website at www.telkom.co.za/ir, including, but
not limited to, increased competition in the South African fixed-line and mobile
communications markets; developments in the regulatory environment; Telkom`s
ability to reduce expenditure, customer non-payments, theft and bad debt, the
outcome of arbitration or litigation proceedings with Telcordia Technologies
Incorporated and others; general economic, political, social and legal
conditions in South Africa and in other countries where Vodacom invests;
fluctuations in the value of the Rand and inflation rates, our ability to retain
key personnel; and other matters not yet known to us or not currently considered
material by us. You should not place undue reliance on these forward-looking
statements. All written and oral forward-looking statements, attributable to us,
or persons acting on our behalf, are qualified in their entirety by these
cautionary statements. Moreover, unless we are required by law to update these
statements, we will not necessarily update any of these statements after the
date hereof either to conform them to actual results or to changes in our
expectations.
Date: 21/07/2004 09:24:31 AM
Produced by the JSE SENS Department
