Moody’s cuts WOM

Moody's Investors Service said it downgraded WOM Mobile SA and subsidiaries' corporate family rating to Caa1 from B2. At the same time, the agency lowered Kenbourne Invest SA’s 2024 and 2028 backed senior unsecured notes ratings to Caa1 from B2.

“The downgrades to Caa1 reflect the deterioration in WOM´s liquidity and heightened refinancing risk that results from the company's aggressive approach towards financial policy and deleveraging. The action also considers the uncertainty around the company´s ability to refinance the CLP 278 billion ($347 million) in outstanding 2024 maturities amid current market conditions and weak liquidity. As of June 2023, WOM had CLP 36 billion ($46 million) in cash and equivalents, compared to CLP 168.2 billion as of December 2022,” Moody’s said in a press release.

Additionally, Moody’s said it forecasts WOM will post negative free cash flow until at least 2025.

The outlook for both entities is negative.

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