TPG Telecom Assigned ‘BBB’ Rating with Negative Outlook Amid Capital Management Plans

TPG Telecom Limited ( (AU:TPG) ) has provided an update.

TPG Telecom Limited has been assigned a ‘BBB’ long-term issuer credit rating by S&P Global Ratings, with a negative outlook due to uncertainties in its capital reinvestment plan and debt reduction timeline. The company plans to use approximately A$4.7 billion from asset sales to Vocus Group Ltd. to manage its capital, aiming to maintain a debt-to-EBITDA ratio of about 2.5x. Despite competitive pressures, TPG’s network sharing agreements are expected to enhance its competitive position and scale in the telecommunications sector.

The most recent analyst rating on (AU:TPG) stock is a Sell with a A$4.30 price target. To see the full list of analyst forecasts on TPG Telecom Limited stock, see the AU:TPG Stock Forecast page.

More about TPG Telecom Limited

TPG Telecom Limited is a prominent player in Australia’s telecommunications industry, holding the third-largest share of the mobile market and the second-largest share of wholesale fixed-line services. The company is known for its high-margin, capital-light business model, which supports robust EBITDA margins and strong cash flow generation.

Average Trading Volume: 1,047,743

Technical Sentiment Signal: Buy

Current Market Cap: A$10.19B

See more insights into TPG stock on TipRanks’ Stock Analysis page.