Fitch puts Wind Acquisition on positive watch

Fitch Ratings said it placed the B+ ratings and RR4 recovery ratings assigned to Wind Acquisition Finance SA's €950 million and $650 million senior notes on Rating Watch positive and affirmed the company's B+ issuer default rating with a positive outlook, B short-term rating, BB/RR2 first-priority senior secured facilities and Wind Finance SL SA's BB/RR2 €700 million second-lien notes. This follows the announcement by Wind Telecomunicazioni spa of its intention to prepay a further €462 million of its senior secured debt by the end of the year.

Fitch said it anticipates an upgrade of the senior notes to BB/RR2 upon confirmation that the €462 million senior debt has been permanently prepaid.

The action reflects improved recovery prospects in a distress scenario, Fitch said. The prepayment of senior debt means there is expected to be €462 million in additional value available to noteholders in a distress scenario, which equates to about 30% of the outstanding amount of the notes.

Fitch views that in a distressed scenario, all parties involved will attempt to preserve the going concern value of the company and avoid a liquidation of the company's assets where possible. The agency therefore applies a going-concern approach to measure the distressed enterprise value of the company.

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