S&P slashes WOM

S&P said it downgraded WOM SA and the ratings on its senior unsecured notes issued through Kenbourne Invest SA to CCC from B. WOM guarantees the notes.

“WOM faces significant near-term refinancing risk, as its $348 million senior unsecured notes are due in November 2024. Management has been working on refinancing for about a year. Negotiations with banks are taking longer than expected and the outcome of this refinancing exercise remains uncertain considering tight market conditions, with limited investor appetite and very high costs of debt for entities under financial pressure,” the agency said in a press release.

Without positive news on refinancing, S&P said WOM might propose a restructuring that would be considered a distressed exchange that would be equivalent to default.

The outlook is negative.

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