S&P: Matterhorn Telecom notes B, CCC+

S&P said it assigned its B issue rating to the senior secured notes to be issued by Matterhorn Telecom SA (Matterhorn; B/stable/--).

The proposed notes consist of a tap of CHF 200 million on existing senior secured fixed-rate notes, as well as new floating-rate notes totaling €265 million (about CHF 287 million). The recovery rating is 3, indicating an expectation of meaningful (50%-70%; rounded estimate 55%) recovery prospects in the event of default.

S&P also assigned a CCC+ issue rating to the proposed CHF 200 million unsecured notes to be issued by Matterhorn Telecom Holding SA through a tap on existing unsecured notes. The recovery rating is 6, indicating negligible (0-10%; rounded estimate 0%) recovery in the event of default.

The agency affirmed the B issue rating on Matterhorn's outstanding senior secured debt and the CCC+ issue rating on its outstanding unsecured debt. The recovery ratings are unchanged at 3 and 6, respectively, indicating an expectation of meaningful (50%-70%; rounded estimate 55%) recovery for the secured debt and negligible (0-10%; rounded estimate 0%) recovery for the unsecured debt.

S&P said the actions follow Matterhorn's proposed dividend recapitalization and partial refinancing.

The B issue rating on the existing and proposed secured debt is supported by the group's substantial transformation and cash generation over the past two years, and the agency’s valuation of the group as a going concern.

© 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.