S&P stabilizes Cable & Wireless view

S&P said it revised its outlook for Cable & Wireless Communications Ltd. to stable from negative and affirmed its BB- long-term issuer credit rating. The agency also affirmed its BB- issue-level ratings on C&W's subsidiaries, Sable International Finance Ltd. and Coral-US Co-Borrower, LLC, and its B+ issue-level ratings on C&W Senior Finance Ltd.

“The pandemic dealt a blow to C&W's operations during 2020, specifically in its B2B and mobile segments. However, the lifting of pandemic-related restrictions, significant additions in fixed and mobile subscribers in Jamaica, and the recent acquisition of Claro Panama should enable the company to post strong revenue growth in the next couple of years,” S&P said in a press release.

The agency noted it expects C&W to maintain tight cost controls and lower content costs to maintain its EBITDA margin at around 40%, above industry's average.

S&P said it sees steady growth for the company in the next 12-18 months.

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