S&P Global Ratings has upgraded Singapore Telecommunications' (SGX:Z74) issuer credit ratings to A+/A-1 from A/A-1, according to a Wednesday release.
The rating agency expects the telecommunication company to retain a balance sheet commensurate with
a higher rating given its regular asset monetization.
S&P believes the company will monetize the remaining SG$2.2 billion from a SG$9 billion asset recycling program by fiscal 2028.
The company has channeled proceeds from its past asset monetization for debt reduction, as it looks to operate with a more controlled balance sheet, S&P said.
These efforts should also help the company anchor shareholder payouts and growth spending, according to S&P.
Still, the company will not monetize assets that significantly lessen its core competitiveness and regional network, the rating agency said.
The rating agency expects the company's debt-to-EBITDA ratio to continue below 2x over the next 24 months.