Moody's rates Millicom notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Millicom International Cellular, SA’s up to $500 million senior notes, changed the outlook to stable from negative and affirmed Millicom's corporate family rating at Ba1, probability of default rating at Ba1-PD and senior bonds at Ba2.

Proceeds will be used primarily to refinance debt at the operating level as well as for general corporate purposes.

The change in outlook reflects Moody's expectation for ongoing operating stability following the recent integration of UNE as part of Millicom's Colombia-based subsidiary. At the same time, the agency said the proposed notes will enhance Millicom's debt profile.

Moody’s said Millicom's Ba1 corporate family rating reflects strong operating performance, solid market shares in key geographies and a multiregional balance of profits and cash flow generation.

The rating also incorporates operating and regulatory risks in the countries where Millicom operates, the global impact of maturing voice business and commoditization trends and the company's active shareholder remuneration history in the form of extraordinary dividends and share buybacks, the agency said.

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