Moody's slashes Total Play

Moody's Investors Service said it downgraded Total Play Telecomunicaciones, SAPI de CV’s corporate family rating to Caa1 from B2 and its backed senior unsecured global notes ratings to Caa2 from B3, with a negative outlook. Previously, the ratings were on review for downgrade.

The downgrades and negative outlook assignment end the review for downgrade started on Aug. 14, the agency said.

“This rating action reflects Total Play's tight liquidity position coupled with the company's heavy reliance on external funding that negatively compares with material debt amortizations of around $1.2 billion through 2025 amid tight credit conditions.

“The negative outlook reflects uncertainties around the execution of the company's liability management plan in the current tight liquidity environment, increasing the risk of a debt restructuring or a distressed exchange,” Moody’s warned in a press release.

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