S&P cuts Mavenir Private

S&P said it downgraded its ratings on Mavenir Private Holdings II Ltd. and its senior secured term loan to CCC+ from B-.

“The downgrade reflects Mavenir's significant underperformance during the first nine months of 2022 and our expectations that operating and financial results will remain weak over the next year. Through the first nine months of 2022, Mavenir's reported EBITDA fell 132% year over year due to a sharp drop in its Mobile Core and OpenRAN segments primarily because of weakness in key customer revenue and high levels of research and development (R&D) expenses,” S&P said in a press release.

S&P said it sees free operating cash flow in 2023 to remain in the red at $275 million-$325 million in 2022 and a FOCF deficit of $175 million-$225 million in 2023.

“As a result, the company could face a liquidity shortfall during the year, absent additional capital infusions,” the agency said.

The outlook is negative.

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