Fitch lifts Sunrise Communications

Fitch Ratings said it upgraded Sunrise Communications Holdings SA’s long-term issuer default rating to BBB-from BB+. Fitch also affirmed Sunrise’s and Sunrise Communications AG’s senior secured debt instrument ratings at BBB-.

“The upgrade reflects Fitch’s adoption of its revised approach to leverage metrics following the introduction of IFRS 16 lease accounting and associated changes made to our corporate rating criteria and recalibration of the telecoms navigator leverage thresholds,” the agency said in a press release.

The previous adjustment of increasing the lease-adjusted debt relating to Sunrise towers’ disposal and related long-term payments now falls away, Fitch said.

Fitch’s approach to Sunrise’s leverage metrics now follows what would happen if a telecoms operator sold similar passive infrastructure to repay debt, the agency said.

The outlook is stable.

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