Moody's changes Adria outlook to stable

Moody's Investors Service said it changed the outlook for Adria Midco BV to stable from negative and affirmed the company's B2 long-term corporate family rating, B2-PD probability of default rating and B2 rating on the €4.58 billion of backed senior secured notes issued by its wholly owned subsidiary United Group BV.

The improved outlook reflects the company’s agreement to sell its mobile tower infrastructure in Bulgaria, Croatia and Slovenia to Tawal, a subsidiary of Saudi Telecom Co. The proceeds will amount to around €1.2 billion. Adria also announced that proceeds from the tower sale will be used to fully repay UG's €525 million and €550 million of bonds maturing in July 2024 and May 2025, respectively, and the remaining funds to partially repay drawings under the super senior revolving credit facility.

"The transaction is positive as it reduces leverage and improves the company's liquidity position, removing near-term refinancing risks," said Agustin Alberti, a Moody's vice president, senior analyst and lead analyst for Adria, in a press release.

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