S&P snips Wom

S&P said it lowered Wom SA’s issuer rating and the rating on the senior unsecured notes issued by finance unit, Kenbourne Invest SA to B from B+. Wom guarantees the notes.

“Wom's investment decisions including its participation in the 5G bidding in 2021, and the more recent option to sell and lease back towers and invest in Wom Colombia, coupled with upstreams (in the form of dividends or loans) to the sponsor, have significantly delayed the company's deleveraging. S&P-adjusted debt to EBITDA was higher than expected–5.2x and 5.8x in 2021 and 2022, respectively–and we believe it will exceed 5x in 2023 as well,” S&P said in a statement.

The outlook is stable.

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