Moody's trims EOLO

Moody's Investors Service said it downgraded the rating on EOLO SpA’s €375 million of senior secured notes due in 2028 to Caa1 from B3, the corporate family rating to B3 from B2 and the probability of default rating to B3-PD from B2-PD.

"The downgrade to B3 reflects the increase in EOLO's leverage resulting from lower subscriber growth and higher than expected capex, leading to a longer period of negative free cash flow generation," said Ernesto Bisagno, a Moody's vice president, senior credit officer and lead analyst for EOLO, in a press release.

The agency forecasts EOLO’s leverage will increase to 6.5x over 2023-2024 from 5.8x in 2022.

The outlook is stable.

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