Moody's snips WOM Mobile

Moody's Investors Service said it downgraded the corporate family rating of WOM Mobile SA to B2 from B1 and Kenbourne Invest SA’s 2024 and 2028 senior unsecured notes ratings to B2 from B1. The outlook was changed to negative from stable.

“The downgrades to B2 reflect WOM´s persistently high leverage and the company's more aggressive approach towards financial policy and deleveraging. Moody's adjusted leverage closed 2022 at 5.2x, in line with year-end 2021 and above Moody's expectations of 4.9x. Despite the execution of the partial tender offer in October 2022 that reduced the 2024 and 2028 notes’ outstanding balance by $300 million to $660 million, leverage remained constant, mostly affected by a significant increase in lease liabilities,” the agency said in a statement.

The weaker outlook reflects an operating environment with anemic economic growth, persistent inflation and fierce competition, Moody’s noted.

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