Fitch puts Wind Tre on positive watch

Fitch Ratings said it placed Wind Tre SpA's long-term BB- and short-term B issuer default ratings as well as the company's BB senior secured debt rating on rating watch positive following the announcement of an internal reorganization of its parent company CK Hutchison Holdings Ltd. (A- /stable).

After the reorganization completion Wind Tre will be owned by CK Hutchison Group Telecom Holdings Ltd. (expected BBB+/stable), the new holding company that consolidates CK Hutchison Holdings' telecoms businesses in Europe (3 Group) and 66%-owned listed entity Hutchison Telecommunications Hong Kong Holdings.

The reorganisation involves the conversion of shareholder loans to equity and refinancing of most of CK Hutchison Group Telecom's debt.

Fitch said it expects the refinancing to be funded by bridging facilities, which in turn, will be later refinanced with longer-term bonds and term loans.

“We expect strong strategic and operational ties between the parent and the subsidiary, which may result in top-down notching of Wind Tre's rating from the parent or equalisation of the ratings depending on the structure of the transaction,” the agency said in a news release.

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