Fitch affirms ratings for Singtel, Optus with stable outlook

Singapore

FITCH Ratings on Tuesday affirmed Singapore Telecommunications' long-term foreign and local-currency issuer default ratings as well as its senior unsecured rating at A+.

The credit rating agency also affirmed Singtel's wholly owned Australian subsidiary Optus' long-term foreign-currency issuer default ratings and senior unsecured rating at A.

The outlook on both issuer default ratings is stable. Singtel's rating has "limited potential" to rise in the short to medium term, Fitch said.

For the financial year ended March 2016, Fitch expects the telco's funds flow from operations (FFO)-adjusted net leverage to increase, following the US$810 million acquisition of managed security company Trustwave Hold…