Moody's assigns B1 rating to Masmovil's new senior secured notes - Moody's Global Credit Research

Moody's assigns B1 rating to Masmovil's new senior secured notes

Moody's assigns B1 rating to Masmovil's new senior secured notes - Moody's Global Credit Research
Moody's assigns B1 rating to Masmovil's new senior secured notes
Published Sep 21, 2020
6 pages (2919 words) — Published Sep 21, 2020
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...ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications. To the extent permitted by law, MOODY'S and its directors, officers,...

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Lorca Holdco Limited , Lorca Telecom Bondco, S.A.U.
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LGD Assessment Masmovil - LGD Assessment – 2021/10/20 – US$ 750.00

Lorca Holdco Limited: Update following downgrade to B2 - Credit Opinion – 2021/10/11 – US$ 250.00 – ...Lorca Holdco Limited (Lorca) is the parent company of Masmovil Ibercom, S.A.'s (Masmovil). Its B2 CFR reflects the significant increase in leverage following the acquisition of Euskaltel, S.A. (Euskaltel, B1 under review for downgrade). Prior to this transaction, the rating was already weakly positioned at the B1 level. The B2 rating reflects the quality of the company's management and the successful execution of its strategy in Spain; its smart non-disruptive price strategy; consistent revenue growth; and cost-cutting because of operating efficiencies, synergies and smart agreements to display the use of networks, which underpins EBITDA margin approaching 39.5% in 2021. The rating also reflects the group's high leverage of more than 6x following the acquisition of Euskaltel; significant reliance on wholesale agreements resulting from the hybrid (owned, co-shared and access to third-party infrastructure) network business model; weak convergent fixed-mobile strategy; exposure to a difficult...

Lorca Holdco Limited: Update following proposed acquisition of Euskaltel - Credit Opinion – 2021/04/07 – US$ 250.00 – ...Lorca Holdco Limited's (Lorca) B1 corporate family rating (CFR) was placed on review for downgrade following the announcement that Masmovil Ibercom, S.A. (Masmovil) had launched a takeover bid to acquire Euskaltel, S.A. (Euskaltel, B1 review for downgrade) for 2 billion in an all-cash offer. The debt-financed acquisition of Euskaltel will likely result in temporarily weaker-than- expected credit metrics including leverage peaking at more than 6x, based on preliminary calculations before synergies and disposals. The company had previously grown rapidly through M&A although with higher integration and execution risks. Before this transaction, Masmovil's rating was already weakly positioned at B1. Nevertheless, Masmovil will benefit from an increase in scale and a further strengthening in its market position and resilience, which may offset the weaker credit metrics. The review will focus on the financing of the transaction, the strategy of the combined group and the potential for synergies,...

Lorca Telecom Bondco, S.A.U.: Covenant Quality Pre-Sale Snapshot: ¬720m _% Senior Secured Notes due 2025 - Covenant Quality Assessment – 2020/09/23 – US$ 750.00 – ...Score: Moderate (3.20) Any restricted payment ("RP") can be made if the cons. total net leverage ratio 3.75x. With an estimated initial ratio of 4.7x, the Issuer is not able to satisfy the test on issue date. Until such time as the ratio is satisfied, the Issuer can make restricted payments with the accumulating credit under the RP income basket and carve-outs. + Restricted payments. All 4 standard RP categories (dividends, capital stock, subordinated debt, restricted investments) plus subordinated shareholder funding. + RP income basket. 50% cons. net income ("CNI") basket, subject to no default and 1 debt test (standard). Start dates. RPs and additions: issue date; CNI basket: first day of the first fiscal quarter prior to the issue date occurs. Upfront credit: greater of 200m and 30% cons. EBITDA. + Re-classification of RPs. Expressly allowed. + Valuation of non-cash additions to RP income basket. Liquidated investments are valued at FMV at time of liquidation. Unrestricted subsidiaries...

Lorca Holdco Limited: Update following proposed take-private transaction - Credit Opinion – 2020/06/30 – US$ 250.00 – ...Lorca Holdco Limited's (Lorca) B1 corporate family rating (CFR) reflects (1) the recently announced network-related transactions by prospective subsidiary Masmovil Ibercom, S.A. (Masmovil) that increase the Spanish telecom operator's capital spending efficiencies, reduce its cash investments, and enhance its scale and competitiveness; (2) Masmovil's track record of revenue growth; (3) the quality of Masmovil's management and the successful execution of its challenger strategy in Spain since its establishment in 2006; (4) its objective to grow its fixed telecom business while maintaining strong growth in mobile, partially underpinned by its fibre-to-the-home (FTTH) co-investment and wholesale agreements; (5) its smart non- disruptive price strategy, which takes advantage of an increasingly polarised market (low- end price-sensitive and premium customers); and (6) its efficient cost structure, supported by network-related contracts that allow it to benefit from owner-economics and achieve...

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Moody's Global Credit Research. "Moody's assigns B1 rating to Masmovil's new senior secured notes" Sep 21, 2020. Alacra Store. Jan 28, 2022. <>
Moody's Global Credit Research. (). Moody's assigns B1 rating to Masmovil's new senior secured notes Sep 21, 2020. New York, NY: Alacra Store. Retrieved Jan 28, 2022 from <>
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