Fitch rates Cable & Wireless notes BB-

Fitch Ratings said it assigned an expected rating of BB- with recovery rating of RR4 to C&W Senior Financing Designated Activity Co.'s proposed 2026 senior unsecured notes.

The recovery rating is capped at RR4 , indicating an expected default recovery of 30% to 50%.

The proceeds will be used to fund a proceeds loan to Sable International Finance Ltd., which is an indirect subsidiary of Cable & Wireless Communications Ltd., Fitch said.

Pursuant to a facility agreement, this loan will be used to repay Cable & Wireless International Finance BV's bond due in 2019, the agency said, as well as a portion of Sable International's 2022 senior notes.

The company's BB- issuer default rating reflects its leading market positions across well-diversified operating geographies and service offerings, Fitch said, and underpinned by solid network competitiveness.

Fitch said it expects that the company's leverage has peaked at close to 5x, following an aggressive capital expenditure cycle during a period of stagnant cash flows.

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