S&P puts MasMovil on watch

S&P said it placed its BB- ratings for MasMovil Ibercom SA and MasMovil Holdphone SAU on CreditWatch with negative implications.

The placement follows a takeover bid by a group of private equity firms.

“We think MasMovil's credit quality is likely to weaken if the transaction goes through because we expect the bidding sponsors will use debt instruments to maximize shareholder returns, pushing leverage up. However, we do not yet have enough information to provide credit-metric forecasts post-transaction,” the agency said in a press release.

S&P said it aims to resolve the placement after the transaction closes or fails.

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