Credit ratings agency Moody's issued ratings and an outlook on Altice Luxembourg’s proposed refinancing
Credit ratings agency Moody's has today issued Caa1 ratings and a negative outlook on Altice Luxembourg’s proposed refinancing.
Altice Luxembourg and its subsidiaries provide pay television, broadband internet and fixed line and mobile telephone services internationally.
“The refinancing is credit positive as it will improve the group's liquidity by extending the debt maturity profile with a weighted average maturity of 7 years and no major maturities due before 2023, at the consolidated restricted group level,” Laura Perez, a Moody's VP-Senior Credit Officer and lead analyst for Altice said, adding: “However, the ratings and outlook of Altice and its credit pools are unaffected given the group's operating challenges in its key telecom markets, its high leverage and its complex financial structure,"
The negative outlook reflects the view that Altice “continues to face operational challenges in Portugal and especially in France,” Moody’s explained, adding: “At the same time, the rating agency believes that the group's management will be stretched as the company looks to dispose of assets to reduce debt.”
Altice Luxembourg announced on 30 April 2019 its proposal to partially refinance its Notes due 2022 to "strengthen its capital structure".