S&P watches Voyage Digital positively

S&P said it placed its B+ ratings for Voyage Digital (NZ) Ltd. and its senior secured debt on CreditWatch with positive implications.

The positive watch follows Voyage Digital's announcement of the NZ$1.076 billion sale of its 2degrees telco tower assets, S&P said.

“We expect the prospective debt reduction of approximately NZ$400 million to the NZ$1.35 billion term loan B debt to improve our assessment of Voyage's credit metrics. The impact of the intended debt reduction is somewhat offset by the creation of a lease liability from the 20-year lease agreement over the towers that we will add to our adjusted debt level. Nevertheless, we expect the company's credit metrics to improve with S&P Global adjusted net debt to EBITDA reducing to below 4x,” S&P said in a press release.

The agency said it aims to resolve the CreditWatch positive once the sale is completed, which is expected to occur in mid-2023.

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