Fitch slices Total Play

Fitch Ratings said it lowered Total Play Telecomunicaciones SAPI de CV’s senior unsecured debt ratings to B+/RR4 from BB-. The agency also downgraded Total Play’s long-term foreign and local currency issuer default ratings to B+ from BB- and placed all the ratings on rating watch negative.

“The downgrades are the result of the company's aggressive YE 2022 capex that was 60% above Fitch expectations and was funded primarily by secured short-term debt. As of March 2023, secured debt represented 48% of the company's total debt. The use of secured short-term debt further limits Total Play's financial flexibility, which is weaker than peers given the default with the cross-border creditors at its related company, TV Azteca,” the agency said in a press release.

The RWN reflects the risks involved in Total Play being able to refinance its debt given current market conditions, Fitch said. Resolving the negative watch could take more than a year.

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