S&P: Helios Towers Nigeria view negative

S&P said it revised its outlook on Helios Towers Nigeria Ltd. (HTN) to negative from positive and affirmed the B long-term corporate credit rating.

At the same time, the agency assigned a B long-term corporate credit rating to special-purpose entity Helios Towers Finance Netherlands BV, a wholly owned subsidiary of Helios Towers Nigeria, in line with the rating on Helios Towers Nigeria.

The outlook is negative.

In addition, S&P affirmed its B issue rating on the $250 million senior unsecured bonds issued by Helios Towers Finance Netherlands and guaranteed on a senior unsecured basis by Helios Towers Nigeria and its subsidiary Tower Infrastructure Co. Ltd.

Also, the agency reinstated the B issue rating on Helios Towers Nigeria’s $20 million senior secured revolving credit facility (RCF) due July 2019 after it incorrectly reported the revolver’s maturity date as July 2015.

S&P said the outlook revision follows its reassessment of country risk in Nigeria to 6 (very high risk) from 5 (high risk). This stems from the revision of the sovereign outlook to negative from stable on March 18.

In addition, the Central Bank of Nigeria's (CBN's) strict foreign exchange controls are constraining manufacturing and trade, and fueling a parallel market in foreign exchange. Furthermore, these controls are undermining the corporate and banking sectors' foreign currency liquidity.

The agency now consequently regards Helios Towers Nigeria’s business risk profile as vulnerable versus fair previously. Still, S&P recognizes that Helios Towers Nigeria will not feel immediate repercussions from increased country risk.

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