Bulletin: Telekom Austria AG's Tower Spinoff Is Expected To Be Credit Neutral - S&P Global Ratings’ Credit Research

Bulletin: Telekom Austria AG's Tower Spinoff Is Expected To Be Credit Neutral

Bulletin: Telekom Austria AG's Tower Spinoff Is Expected To Be Credit Neutral - S&P Global Ratings’ Credit Research
Bulletin: Telekom Austria AG's Tower Spinoff Is Expected To Be Credit Neutral
Published Jul 12, 2023
2 pages (988 words) — Published Jul 12, 2023
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Abstract:

STOCKHOLM (S&P Global Ratings) July 12, 2023--S&P Global Ratings today said that it expects Telekom Austria AG's planned tower spinoff to be credit neutral. We do not anticipate a material effect from the transaction on our forecast for S&P Global Ratings-adjusted leverage of about 1.3x-1.4x in 2023. This is because we understand the €1 billon of debt, which will be transferred to the tower asset, will be balanced by an increase in the company's operating lease liabilities. In addition, we regard the separation as fairly neutral to our business risk assessment because it only affects the passive part of Telekom Austria's (A-/Stable/A-2) infrastructure. We note that the company will hold an extraordinary general meeting on Aug. 1, 2023, and that

  
Brief Excerpt:

...July 12, 2023 STOCKHOLM (S&P Global Ratings) July 12, 2023--S&P Global Ratings today said that it expects Telekom Austria AG's planned tower spinoff to be credit neutral. We do not anticipate a material effect from the transaction on our forecast for S&P Global Ratings-adjusted leverage of about 1.3x-1.4x in 2023. This is because we understand the 1 billon of debt, which will be transferred to the tower asset, will be balanced by an increase in the company's operating lease liabilities. In addition, we regard the separation as fairly neutral to our business risk assessment because it only affects the passive part of Telekom Austria's (A-/Stable/A-2) infrastructure. We note that the company will hold an extraordinary general meeting on Aug. 1, 2023, and that the transaction is expected to close during September 2023....

  
Report Type:

Bulletin

Ticker
TKA@AV
Issuer
Telekom Austria AG
GICS
Integrated Telecommunication Services (50101020)
Sector
Global Issuers
Country
Austria
Region
Latin America
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Telekom Austria AG's Tower Spinoff Is Expected To Be Credit Neutral" Jul 12, 2023. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Telekom-Austria-AG-s-Tower-Spinoff-Is-Expected-To-Be-Credit-Neutral-3018696>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Telekom Austria AG's Tower Spinoff Is Expected To Be Credit Neutral Jul 12, 2023. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Telekom-Austria-AG-s-Tower-Spinoff-Is-Expected-To-Be-Credit-Neutral-3018696>
  
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