Written by: Editor
2/26/2009 8:37 AM

Debt ratings agency, Fitch Ratings says in a new report, that notwithstanding the impact of the current recessionary environment, the overall Outlook for the Asia Pacific telecoms industry is Stable, and most operators are well-placed to defend their credit profiles. The report explores how key financial metrics will move for each of the operators across Asia Pacific in 2009 and conclude that while revenue growth is likely to slow, cash flow from operations (CFO) and free cash flow (FCF) after dividends are likely to, on average, moderately rise.
Out of 24 issuers the agency rates in the region,19 bear a Stable Outlook, and although the sector is far from being immune to the effects of the global economic recession, the operators will be able to weather the slowdown and maintain their credit profiles in 2009 given their robust liquidity positions, low gearing levels, strong FCF generation, flexibility to reduce costs and a lower sensitivity to changes in GDP growth compared with other sectors, notes Matt Jamieson, Senior Director and Head of Fitch's Asia Pacific Telecommunications, Media and Technology team.The caution though is that while telecom operators proved to be relatively resilient during previous economic downturns, the impact of the recession will be felt harder this time round, adds Mr. Jamieson.

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