S&P downgrades Vivacom

Standard & Poor’s said it lowered the long-term corporate credit rating on Bulgarian Telecommunications Co. EAD (Vivacom) to B- from B.

The agency also said it lowered the long-term issue rating on Vivacom’s senior secured debt to B- from B.

The ratings remain on CreditWatch with developing implications, where they were placed April 2, S&P said.

The downgrades follow further delays with the refinancing of the €150 million bridge loan at Vivacom’s holding company, which matured in May, the agency said.

The group credit profile has meaningfully deteriorated, S&P said, and the bridge loan is unlikely to be repaid.

Failure to repay the loan may potentially lead to enforcement proceedings at the holding company, the agency added.

Vivacom’s stand-alone credit profile also continues to reflect the company’s solid market position in Bulgaria as the largest telecom operator, S&P said.

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