Fitch affirms Dialog Axiata

Fitch Ratings said it affirmed Dialog Axiata plc's national long-term rating at AAA(lka), along with its cumulative redeemable preference shares at AA+(lka).

The outlook is stable.

The ratings incorporate support from its 83% shareholder, Axiata Group Bhd., underpinned by the latter's board representation in Dialog, a common brand and the integration of strategic and some operational functions between the two companies, Fitch said.

Axiata has provided tangible support to Dialog throughout its history, most recently in the form of shareholder loan and a corporate guarantee on a long-term offshore bank credit line, the agency said.

The agency said it expects Dialog to generate positive free cash flow over the medium term, helped by strong operating cash flow generation and selective capital expenditure.

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