...Low Rating Headroom: Fitch Ratings expects Telekom Malaysia Berhad's (TM) FFO-adjusted net leverage to increase to around 2.4x in 2017-2018 (2016: 2.3x), as the company continues to build out its long-term evolution (LTE) and fixed-line network. The Stable Outlook reflects our view that TM will deleverage to below 2.25x by 2019. We are likely to consider taking negative rating action should that be delayed, which may arise from higher-than- expected investments or a significant shrinking in EBITDA margins. Broadband Pricing Uncertainties: The government said in its 2017 Budget that fixed broadband service providers should offer higher speeds at existing prices from January 2017, and that the speed will be doubled with a 50% reduction in prices by 2019. There is still a lack of clarity if the latter would entail a reduction in revenues for fixed- broadband service providers. Providing higher speeds at the same tariffs is broadly revenue neutral, and we expect this to involve incremental...
