Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 2 (7 lettori)

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Wind Tre 'BB-' Ratings On CreditWatch Positive On Debt Refinancing Plans Via CK Hutchison Group Telecom

  • 06-Aug-2019 09:24 EDT
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  • CK Hutchison Holdings Ltd. (CKHH) has announced it will refinance all of Wind Tre's existing external debt through new debt raised at its recently created subsidiary CK Hutchison Group Telecom Holdings Ltd. (A-/Stable/--).
  • We are therefore placing our 'BB-' ratings on Wind Tre and its related senior secured debt on CreditWatch with positive implications.
  • We will resolve the CreditWatch placement upon completion of the debt refinancing.

PARIS (S&P Global Ratings) Aug. 6, 2019—S&P Global Ratings today took the rating actions listed above.

The CreditWatch follows CKHH's announcement that it will refinance all of Wind Tre's existing external debt--approximately €10 billion--through new debt raised at its indirectly wholly owned subsidiary, CK Hutchison Group Telecom Holdings. CKHH has grouped its telecom operations in Europe, Hong Kong, and Macau into CK Hutchison Group Telecom Holdings, making the new holding company the 100% parent of Wind Tre. We note that about half of CK Hutchison Group Telecom Holdings' EBITDA stems from Wind Tre, its largest contributor.

We believe the announced transaction, alongside Wind Tre's hefty contribution to the telecom group's revenues and EBITDA, should translate into a higher degree of potential group support for Wind Tre than is currently factored into our view of its creditworthiness. We therefore expect to ultimately increase the related uplift that we apply to the rating on Wind Tre.

We will resolve the CreditWatch upon completion of the debt refinancing. If successful, the transaction will lead us to withdraw the existing issue ratings on the repaid debt and likely prompt an upgrade of Wind Tre by two or more notches.
 

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