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Axiata s credit profile likely to weaken as Celcom-Digi merger nears, says S&P

KUALA LUMPUR (Sept 20): Axiata Group Bhd's credit profile is increasingly likely to weaken, according to S&P Global Ratings. In a statement on  Monday (Sept 19), the rating agency said the proposed merger between Celcom Axiata Bhd (Axiata's Malaysia unit) with Digi.com Bhd is now a step closer to completion. “In our view, this transaction will erode the earnings quality of Axiata. “An acquisition-fueled increase in leverage adds further pressure to Axiata's credit profile,” it said.

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