Fitch cuts Kenbourne notes

Fitch Ratings said it downgraded Kenbourne Invest SA’s 2024 and 2028 unsecured dollar-denominated notes to B-/RR4 from B+/RR4 and placed the ratings on rating watch negative.

The agency concurrently lowered and withdrew WOM SA's long-term foreign currency issuer default rating and local currency IDR to B- from B+ due to commercial reasons. Fitch concurrently assigned long-term foreign-currency and local-currency IDRs of B- to WOM Mobile SA, the holding company of WOM, and placed the ratings on RWN.

“The downgrade reflects WOM's tight liquidity position and elevated refinancing risk against a backdrop of closed capital markets. This has impaired the company's ability to roll portions of debt and sell assets. Additionally, Fitch expects the company to remain FCF negative through at least 2024, further straining liquidity,” the agency said in a press release.

The negative watch mirrors the elevated uncertainty regarding WOM Mobile's ability to improve its liquidity position materially in the coming months, Fitch noted.

Fitch added that the company is talking with potential lenders and investors to refinance its senior unsecured notes due November 2024 which had $348 million outstanding as of the second quarter of 2023.

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