S&P ups Teleguam loans

S&P said it raised its ratings on TeleGuam Holdings Inc.’s loans to BB- from B+ and revised the recovery rating to 2 from 3, indicating substantial (70%-90%; rounded estimate: 75%) recovery in default.

“The improvement in ratings was primarily due to material debt repayment over the last year,” S&P said in a press release.

Additionally, the agency affirmed TeleGuam’s B+ issuer rating and revised the outlook to positive from stable.

“The outlook revision reflects the potential for improved credit metrics enabled by solid operating performance. Despite tourism headwinds, the company continues to demonstrate solid earnings growth in its broadband and wireless segments, partially offset by low- to mid-single-digit declines in the company's wireline business, which accounts for about 19% of total revenues. These factors, coupled with $11 million of voluntary debt repayment, enabled the company to reduce leverage to 3.4x as of Dec. 31, 2021, from 3.6x as of Dec. 31, 2022,” S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.