Chunghwa Telecom Announces ‘AA’ and ‘tw AAA’ Long-term Ratings Reaffirmed by S&P Global Ratings and Taiwan Ratings Corp

Taipei, Taiwan, R.O.C. January 14th, 2025 - Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (“Chunghwa” or “the Company”) announces that the Company’s 'AA' and 'tw AAA' long-term issuer credit ratings were reaffirmed by S&P Global Ratings and Taiwan Ratings Corporation, respectively, with an outlook that the long-term ratings will remain stable. In addition to having the highest credit rating in the industry domestically, Chunghwa has also received the highest rating among international telecommunications companies evaluated by S&P Global.

Taiwan Ratings Corporation believes that "Chunghwa Telecom should be able to maintain its market leadership, very strong cash flow, and robust financial policy and resilience over the next two years. Additionally, due to reduced capital expenditures, its liquidity will improve." Chunghwa Telecom echoes that the company will continue its rigorous financial management and practices to enhance the capital utilization efficiency in its operations, thereby creating value for stakeholders.

Over the past year, Chunghwa Telecom's stringent management has demonstrated outstanding results in its operations. In the mobile business sector, the superior quality of the 5G network was granted the first-place for network speed in Taiwan by international professional organizations such as OpenSignal and Speedtest®. This has driven mobile customers to continuously upgrade to 5G and an increase in postpaid customers, leading to growth in both customer number and revenue. Chunghwa’s video platform offered services in 4K high definition and continuously introduces a rich variety of content through the Company’s strategic alliances with OTT providers. Additionally, benefiting from the broadcast of the Paris Olympics and major events such as MLB and BWF, the number of channel subscriptions exceeded three million. In emerging businesses, Chunghwa Telcom focused on cloud IDC, cybersecurity, and smart IoT businesses, etc., aiming to optimize related technologies and equipment, strengthen partnerships, and provide customers with total solutions.

Chunghwa Telecom regards corporate governance and integrity management as the cornerstone and guideline for sustainable corporate development. To strengthen management, the company actively introduced the ISO37001 anti-bribery management system in 2024 and successfully passed external verification, becoming the first telecom operator in Taiwan to implement this management system. To achieve environmental sustainability, Chunghwa passed the SBTi Net-Zero target verification, becoming the only telecom operator in Taiwan to commit to reaching the target by 2045. Furthermore, the Company was approved to join the EV100 initiative, committing to achieving 100% electrification of transport vehicles by 2030. To improve the workplace environment and welfare for employees, the maternity subsidy was increased to NT$80,000 per child, maternity leave was extended to 13 weeks, meal allowances were provided, and additional transportation allowances were also granted starting in 2025. These ESG initiatives have received high recognition from both employees and the public.

As Taiwan's largest telecom operator, Chunghwa Telecom will continue to leverage its four major assets “customer partners, technology platforms, infrastructure networks, and organizational talent” and its four core values “integrity, customer trust, innovation and value creation, and accountability” to achieve its three major visions: “to become an international benchmark enterprise based on sustainable development, to become a leading brand as a co-creator of the digital ecosystem, and to become a top-tier technology business group exceeding a trillion-dollar market value.”

 

About Chunghwa Telecom

Chunghwa Telecom (TAIEX 2412, NYSE: CHT) ("Chunghwa" or "the Company") is Taiwan's largest integrated telecommunications service provider in Taiwan, with leading offerings in fixed communication, mobile communication, broadband, and internet services. The Company also provides information and communication technology services to enterprise customers with its big data, cybersecurity and IDC capabilities, and is expanding its business into emerging technology services such as IoT, AI, etc. Chunghwa Telecom has actively and continuously engaged and implemented environmental, social and governance (ESG) initiatives with the vision to become an international benchmark enterprise built upon sustainable development and has won numerous international and domestic awards and recognitions for its ESG commitments and best practices.

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