Moody’s eyes MasMovil for upgrade

Moody’s Investors Service said it placed Lorca Holdco Ltd.’s (MasMovil Group) B2 ratings on review for upgrade. Concurrently, Moody's placed on review for upgrade the B1 ratings on the backed senior secured instruments issued by Lorca Finco plc, the B1 ratings on the backed senior secured notes issued by Lorca Telecom Bondco, SAU, and the Caa1 rating on the €500 million backed senior unsecured notes of Kaixo Bondco Telecom, SAU.

The agency changed the outlook to ratings under review from stable for all entities.

The review was prompted by the July announcement that MasMovil and Orange SA agreed to merge their Spanish businesses through a 50%-50% co-controlled joint venture, the agency said.

"We have placed the ratings on review for upgrade because if the proposed merger closes under the terms and conditions announced, the combined entity will benefit from an enhanced business profile, scale, and market position in Spain and its credit metrics will also improve over time," said Carlos Winzer, a Moody's senior vice president and lead analyst for MasMovil, in a press release.

Moody’s said it will consider the transaction under the announced terms, the business and financial profile of the combined company, the strategic priorities the owners may want to implement, potential remedies that may be required for regulatory approval and the final debt structure of the venture.

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