Moody's assigns T-Mobile NL loan B1

Moody's Investors Service said it gave a B1 rating to WP/AP Telecom Holdings IV BV’s planned €2 billion backed term loan due 2028. The agency also assigned a first-time B2 long term corporate family rating and a B2-PD probability of default rating to WP/AP Telecom Holdings III BV (T-Mobile NL), the ultimate holding company for T-Mobile Netherlands Holding BV.

On Sunday, funds managed by private equity sponsors APAX Partners LLC and Warburg Pincus LLC reported the joint acquisition of T-Mobile NL from Deutsche Telekom AG and Tele 2 AB for an acquisition value of €4.84 billion.

"The B2 rating assigned to T-Mobile NL reflects its top position in the Dutch consumer mobile market supported by the highest spectrum ownership and network quality, and sustained free cash flow generation," said Ernesto Bisagno, a Moody's vice president and senior credit officer and lead analyst for T-Mobile NL, in a press release.

"However, it also reflects its elevated leverage of well above 6x at closing of the LBO transaction, still modest, albeit improving position in the fixed-line market, and execution and commercial risks that may arise as the company separates from the DT Group," added Bisagno.

The outlook is stable.

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