S&P: Wind Telecomunicazioni view to positive

Standard & Poor's said it revised its outlook on Wind Telecomunicazioni SpA to positive from negative and affirmed the BB- long-term corporate credit rating.

The outlook revision follows Vimpelcom's announcement that it reached an agreement to form a 50/50 joint venture with CK Hutchison Holdings Ltd. that will combine their telecom businesses in Italy – Wind and 3 Italia.

S&P expects this transaction to improve Wind's financial risk profile, with adjusted leverage declining toward 5 times, upon closing, from nearly 6 times forecast at year-end 2015.

The agency also foresees meaningful synergies between the two companies relating to networks, marketing, sales and overheads.

On a pro forma basis, this should support deleveraging to less than 4.5 times adjusted debt to EBITDA by 2018 and substantially improve Wind's free cash flow generation.

© 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.