Moody’s gives Ba3 to Sable loan

Moody's Investors Service said it assigned a Ba3 rating to the proposed $1,125,000,000 7.5-year senior secured term loan of Sable International Finance Ltd.

Proceeds will be used to repay Sable’s existing $1.1 billion term loan B and $625 million revolving credit facility.

The Ba3 corporate family rating of Cable & Wireless Communications Ltd., the Ba3 rating of the senior unsecured notes issued by Columbus International Inc., the Ba3 rating of Sable’s senior unsecured notes and the B2 rating of the senior unsecured notes issued by Cable & Wireless International Finance BV (CWIF) are unchanged.

The outlook is stable.

Moody’s said the refinancing does not have any material effect on Cable & Wireless’ debt and leverage levels, and will extend Cable & Wireless’ debt maturity profile. The transaction also proposes the maturity extension of Sable’s $625 million revolving credit facility.

The alignment of the secured and unsecured ratings of Sable and unsecured ratings of Columbus with Cable & Wireless’ Ba3 corporate family rating reflects the agency’s assessment that, with the exception of the unsecured debt at CWIF, there is no structural subordination or security that merits differentiation from the corporate family rating.

The CWIF bonds are rated B2, two notches below the corporate family rating, because they benefit only from a structurally subordinated guarantee and have access to Cable & Wireless’ cash flows only after Sable, ranking last in the priority of claims, Moody’s explained.

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