Moody's trims Liquid Telecom

Moody's Investors Service said it downgraded Liquid Telecommunications Holdings Ltd.'s corporate family rating to B2 from B1 and lowered to B2 from B1 the instrument rating on the $620 million of backed senior secured notes due 2026 issued by Liquid Telecommunications Financing plc. The outlook was changed to stable from negative.

“The downgrade of Liquid Telecom to B2 reflects the company's continued high leverage when excluding EBITDA generated in Zimbabwe. Debt to EBITDA excluding Zimbabwe has remained above 5x since February 2021 and stood at 5.3x for the 12 months ended August 2022, which Moody's considers as more appropriately reflected in a B2 rating,” the agency said in a press release.

The improved outlook reflects the expectation that Liquid Telecom will sustain debt to EBITDA leverage in a stable range over the next one to two years, and over time, gradually lower leverage as it starts to generate free cash flow while continuing to invest, the agency said.

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