Bulletin: Spark's Spike In Leverage Should Reduce In Second Half

MELBOURNE (S&P Global Ratings) Feb. 19, 2020--S&P Global Ratings today said that Spark New Zealand Ltd.'s (A-/Stable/A-2) higher leverage should unwind somewhat in the second half ending June 30, 2020. The rating and outlook remain unchanged despite the reduced ratings headroom. We expect Spark's leverage to improve in the second half as a result of a seasonal improvement in earnings, reduction in capital expenditure, and proceeds from recently completed asset sales, partially offset by working capital growth. In particular, we expect a supportive operating environment and earnings momentum to continue through to the second half. In our view, Spark remains committed to maintaining its conservative financial policies and low financial leverage. Spark reported solid growth in mobile as well as

...February 18, 2020 MELBOURNE (S&P Global Ratings) Feb. 19, 2020--S&P Global Ratings today said that Spark New Zealand Ltd.'s (A-/Stable/A-2) higher leverage should unwind somewhat in the second half ending June 30, 2020. The rating and outlook remain unchanged despite the reduced ratings headroom. We expect Spark's leverage to improve in the second half as a result of a seasonal improvement in earnings, reduction in capital expenditure, and proceeds from recently completed asset sales, partially offset by working capital growth. In particular, we expect a supportive operating environment and earnings momentum to continue through to the second half. In our view, Spark remains committed to maintaining its conservative financial policies and low financial leverage. Spark reported solid growth in mobile as well as cloud, security, and service management revenue in the half year ended Dec. 31, 2019. This was partially offset by higher costs, resulting in EBITDA net investment income (EBITDAI,...

Bulletin