S&P places Wom on watch

S&P said it placed its B ratings for Wom SA and the senior unsecured notes sold by its financing unit Kenbourne Invest SA, and guaranteed by Wom, on CreditWatch with negative implications.

The agency said Wom will continue posting cash flow deficits through 2024, and its $348 million senior unsecured bond is due in November 2024.

“Failure to close the refinancing in the next couple of months or absent improvements in cash flow, will put the company at the risk of a significant liquidity shortfall over the next 12-18 months,” the agency said in a statement.

The negative watch reflects the potential for a downgrade Wom by one or more notches in the next three months if it cannot refinance its senior unsecured notes due November 2024. “The placement also reflects the company's additional financing needs through 2024 amid large capital expenditures (capex) and working capital outflows. We could lower the rating if Wom runs into persistent hurdles in accessing financing,” S&P said.

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