RAM Ratings updates rating criteria for telecommunication sector to reflect sector evolution

Published on 22 Jul 2026.

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As part of its periodic review of rating methodologies, RAM Ratings has published an updated analytical framework for assessing the credit risk of telecommunication (telecom) companies. While RAM’s Corporate Credit Master Criteria continues to apply across all sectors, the updated telecom criteria  paper  captures the sector’s increased complexity and faster pace of change, with a sharper focus on an issuer’s ability to sustain resilient and recurring cash flow amid rapid technological changes, evolving consumer behaviour and intensifying competitive pressures. The criteria also places greater emphasis on industry, business and financial risks, as well as environmental, social and governance (ESG) considerations, recognising the credit relevance of fibre network expansion, enterprise solutions, infrastructure sharing, cost efficiency and spectrum availability in shaping the issuers’ competitive positions and cash flow resilience.

This updated criteria supersedes RAM’s previous Ratings Methodology for the Telecommunications Industry published in November 2008.  No existing ratings in RAM’s portfolio will be affected by the updated criteria. For more information, visit www.ram.com.my.

 

Analytical contacts
Davinder Kaur Gill
(603) 2708 8220
davinder@ram.com.my

Karin Koh
(603) 2708 8237
karin@ram.com.my

Media contact
Sakinah Ariffin
(603) 2708 8212
sakinah@ram.com.my

 

The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

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Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

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