Fitch affirms WIND

Fitch Ratings said it affirmed WIND Telecomunicazioni Spa's long-term issuer default rating at BB.

The outlook is negative.

The negative outlook primarily reflects WIND's low capacity to withstand further pressures, which are probable in view of austerity, declining GDP and high unemployment in Italy, according to the agency.

Capacity to reduce leverage from free cash flow is tight due to high interest payments and capital expenditures while even modest EBITDA declines are likely to trigger an increase in leverage to above what would be consistent with the current ratings level, the agency noted.

WIND's ratings benefit from potential support from its sole ultimate shareholder, Vimpelcom Ltd., whose credit profile remains notably stronger than WIND's, Fitch said.

On a standalone basis, WIND's credit profile corresponds to a BB- level.

WIND's credit profile is supported by its established position in Italy, complemented by an expanding alternative fixed-line/broadband business, the agency added.

WIND's leverage is high for its rating level at 4.9x net debt (including pay-in-kind debt) to EBITDA at end-2011, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.