Moody’s rates Matterhorn notes B2

Moody's Investors Service said it assigned a B2 rating to the CHF 2,085,000,000 equivalent senior secured notes due 2025 and 2026 to be issued by Matterhorn Telecom SA (MT), a wholly owned subsidiary of Matterhorn Telecom Holding SA (MTH).

MTH and MT are the ultimate holding company and intermediate holding company of Salt Mobile SA, respectively.

The outlook is stable.

All other ratings are unchanged, including the B2 corporate family rating and B2-PD probability of default rating of Matterhorn Telecom Holding, as well as the existing instrument ratings.

The company is refinancing, with proceeds from the new notes, MTH's outstanding €299 million senior unsecured notes due 2023, the outstanding €1 billion and CHF 411 million senior secured notes due 2022, and the outstanding €75 million senior secured notes due 2023 issued by MT.

Moody's expects to withdraw the ratings on the existing debt instruments once they are repaid. As part of the refinancing exercise, the existing CHF 100 million super senior revolving credit facility will be replaced with a new CHF 75 million super senior revolver maturing in 2023.

"While the transaction is leverage neutral, the refinancing is credit positive given that Salt will lock-in low interest rates for the long term and extend its debt maturity profile," Laura Perez, Moody's vice president, senior credit officer and lead analyst for Salt, said in a news release.

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