Telekom Srbija Group secures landmark credit ratings from Fitch Ratings and Moody’s Investors Service, strengthening its financial position and regional market credibility.
Telekom Srbija Group has reached a historic milestone in its corporate development and in the broader evolution of capital markets across Southeastern Europe. The company announced that it has successfully obtained international credit ratings from two of the world’s leading rating agencies—Fitch Ratings and Moody’s Investors Service—marking the first time a company headquartered in the Western Balkans has achieved such recognition while issuing bonds on the international financial market.
This landmark accomplishment represents more than a corporate achievement; it signals a significant step forward for the region’s economic credibility and integration into global capital markets. By securing ratings from two globally respected agencies, Telekom Srbija has reinforced investor confidence in its financial stability, operational strength, and long-term growth strategy. The development also sets a precedent for other Serbian and Western Balkan companies aspiring to access international financing channels.
International Bond Market Entry
Telekom Srbija’s debut bond issuance on the international financial market was accompanied by a long-term issuer rating affirmation from Fitch Ratings. The agency highlighted the company’s strong market position, resilient cash flow generation, and disciplined financial management as key strengths underpinning the rating. Fitch’s evaluation reflects confidence in the Group’s ability to sustain operational performance while managing debt responsibly within a dynamic and competitive telecommunications landscape.
At the same time, Moody’s Investors Service assigned a B1 rating to the company’s bond issuance. Moody’s assessment underscores Telekom Srbija’s established operational track record, its strategic importance in the regional telecommunications ecosystem, and its consistent revenue generation across diversified service segments. The rating further validates the company’s prudent investment approach and its capacity to maintain financial flexibility amid evolving market conditions.
Being rated by both Fitch and Moody’s simultaneously is particularly noteworthy. These agencies are widely regarded as benchmarks for creditworthiness in global markets. Their evaluations influence institutional investment decisions, shape borrowing costs, and provide transparent frameworks for assessing financial risk. For Telekom Srbija, receiving ratings from both agencies strengthens its credibility among international investors and broadens its access to diversified funding sources.
A First for the Western Balkans
Telekom Srbija’s achievement carries regional significance. As the first company headquartered in the Western Balkans to issue bonds on the international financial market and secure ratings from two major global credit rating agencies, it has effectively raised the bar for corporate financing standards in the region.
The Western Balkans have long been characterized by emerging-market dynamics, with limited representation in global bond markets compared to Western Europe. Telekom Srbija’s successful entry into these markets demonstrates growing maturity in corporate governance, financial transparency, and strategic planning among regional enterprises. It also reflects strengthening macroeconomic fundamentals in Serbia and neighboring countries.
This milestone is expected to have a ripple effect across the regional business landscape. By proving that a Western Balkan-headquartered company can meet the rigorous standards required by global rating agencies and international investors, Telekom Srbija may encourage other enterprises to pursue similar paths. Enhanced access to international capital markets can accelerate infrastructure development, technological modernization, and economic growth across Southeastern Europe.
Leadership Perspective
Vladimir Lučić, CEO of Telekom Srbija, described the development as a defining moment not only for the company but also for the broader regional business community. According to Lučić, entering the international bond market and securing dual credit ratings reflects years of consistent operational growth, strategic investment, and relationship-building with international stakeholders.
He emphasized that the milestone demonstrates the robustness of Telekom Srbija’s business model and validates its disciplined approach to expansion. Over the past several years, the company has focused on strengthening its core markets, optimizing cost structures, and enhancing service quality. These efforts have translated into sustained revenue growth, improved profitability metrics, and increased operational efficiency.
Lučić also highlighted the broader implications of the achievement, expressing confidence that it will pave the way for other Serbian and regional companies to compete on the global financial stage. By successfully navigating the complexities of international bond issuance and credit evaluation, Telekom Srbija has showcased the region’s potential to align with global capital market standards.
Strong Market Position and Operational Performance
Telekom Srbija Group stands as the leading telecommunications and digital services provider in Southeastern Europe. With approximately 14 million subscribers and a workforce exceeding 13,000 employees, the Group operates across 13 countries, including Serbia, Bosnia and Herzegovina, Montenegro, Croatia, Slovenia, North Macedonia, Turkey, Austria, Switzerland, Germany, the United States, the Netherlands, and Belgium.
The company’s diversified portfolio spans four primary service segments:
- Fixed Telephony – Traditional voice communication services supported by modernized infrastructure.
- Mobile Communications – Extensive mobile network coverage and advanced data services.
- Internet Services – Broadband connectivity solutions for residential and business customers.
- Multimedia – Digital television, streaming platforms, and content distribution.
This diversified operational footprint provides resilience against market fluctuations and enhances recurring revenue streams. The Group’s strong domestic leadership in Serbia is complemented by a growing international presence, reinforcing its strategic position within the regional telecommunications ecosystem.
Investment in Growth and Digital Transformation
In recent years, Telekom Srbija has significantly increased investments in network expansion, digital platforms, and media content. Capital expenditures have focused on upgrading mobile and fixed infrastructure, expanding fiber-optic networks, and enhancing broadband capabilities. These initiatives aim to meet rising consumer demand for high-speed connectivity and seamless digital experiences.
The company has also invested heavily in multimedia and content production, strengthening its competitive differentiation in increasingly converged telecommunications and media markets. By integrating connectivity with content, Telekom Srbija has positioned itself to capture value across the digital services value chain.
Digital transformation remains central to the Group’s long-term strategy. Advanced analytics, automation, and customer-centric digital solutions are being deployed to enhance service delivery, optimize operational processes, and improve user experience. Such initiatives align with broader global telecommunications trends, where operators are evolving into integrated digital service providers.
Financial Discipline and Sustainability
A key factor behind the positive credit assessments from Fitch and Moody’s is Telekom Srbija’s disciplined financial strategy. The company has demonstrated a balanced approach to growth—pursuing expansion while maintaining prudent leverage ratios and robust liquidity buffers.
Strong and predictable cash flows from core operations provide the foundation for debt servicing and capital reinvestment. Meanwhile, strategic planning ensures that investments are aligned with long-term value creation objectives rather than short-term gains.
Sustainability considerations are also increasingly integrated into the company’s strategic outlook. Telecommunications infrastructure plays a critical role in enabling digital inclusion, economic participation, and environmental efficiency. By expanding broadband access and investing in modern network technologies, Telekom Srbija contributes to regional socioeconomic development and digital empowerment.
Regional Economic Impact
Telekom Srbija’s international bond issuance and dual credit ratings arrive at a time when Southeastern Europe is intensifying efforts to attract foreign investment and modernize infrastructure. The company’s success reinforces the perception of Serbia and the Western Balkans as emerging investment destinations with improving institutional frameworks and economic prospects.
International investors often rely on credit ratings as benchmarks for assessing country and corporate risk. By meeting global rating standards, Telekom Srbija indirectly strengthens the investment profile of the region. This can facilitate broader capital inflows, stimulate public-private partnerships, and encourage further cross-border economic integration.
Moreover, the Group’s operations across multiple European and international markets reflect the increasing interconnectedness of regional businesses. As digital connectivity becomes a cornerstone of economic competitiveness, strong telecommunications operators serve as catalysts for innovation, entrepreneurship, and technological advancement.
