TRIS Rating affirms Samart Telecoms’ ‘stable’ outlook

The rating reflects SAMTEL’s strong competitive position in information technology network and outsourcing services, proven track record of undertaking public sector projects, and moderate level of recurring income, TRIS Rating said. 
“These strengths are partially offset by the fluctuations in undertaking trading/turnkey projects which rely heavily on government sector’s IT budgets,” the ratings agency said.
It also said the stable outlook reflects the favourable prospects for the IT industry and the expectation that SAMTEL will remain competitive when bidding for public sector projects. 
SAMTEL’s credit downside could be triggered if its deb-to-capitalisation ratio exceeds 60 per cent for a sustained period, TRIS Rating said.