S&P ups Mulhacen

S&P said it raised its long-term issuer credit rating on Mulhacen Pte. Ltd. to CCC+ from D. Mulhacen is the holding company for WiZink.

Mulhacen's bond restructuring extended the group's debt maturity profile, but the overall debt burden is still substantial, and its capacity to honor financial obligations remains low, the agency said.

“We anticipate that WiZink will remain loss-making this year, before returning to modest profits by 2023, which will constrain its ability to upstream dividends to its parent. Alongside Mulhacen's debt restructuring, WiZink received a €250 million capital injection. We anticipate that the bank will deploy most of it to enhance provisions for legal claims, while remaining loss-making in 2022 and only returning to modest profits next year,” S&P said in a press release.

The outlook is stable.

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