S&P ups Matterhorn, rates notes BB-

S&P said it raised its ratings for Matterhorn Telecom Holding SA and its senior secured debt to BB- from B+ and rated its planned CHF 100 million of senior secured notes BB-.

“The upgrade reflects our view that Matterhorn will maintain debt to EBITDA at about 4.5x, supported by resilient operating performance over the next two years. We anticipate a solid operating performance driven by low churn in the mobile division and growing market share in both mobile and fixed thanks to value-for-money offers. Solid profitability, with EBITDA margins exceeding 50%, and growth in ultrafast broadband solution, Salt Home, should also support its performance.

“We therefore forecast S&P Global Ratings-adjusted debt to EBITDA at about 4.6x in 2023, declining to about 4.4x in 2024,” S&P said in a press release.

Matterhorn plans to use the notes’ proceeds to partly refinance upcoming maturities of CHF 250 million of notes due in September 2024.

The outlook is stable.

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