Within a month, the rating agency Standard & amp; Poor’s (S & P) down into four levels the debt rating of Hi, which was now in the eighth level of ‘waste’
A month ago, the S & amp;. P cut the rating of the first telecom operator (BB +) to the third level of ‘junk’, then go back down the debt rating and on Thursday insisted on relegation with new cut.
in the report the agency justified the measure for not believing in the virtues of the Brazilian operator strategy to reduce debt through a possible exchange of debt at a discount level
the S & amp;. P underlines the financial crisis that the company lives and expresses the conviction that the strategy “to reduce debt will likely go through an exchange of debt at a discount level, given the high level of leverage and low market prices for bonds.”
in its analysis of 15 February, the S & P estimated that Hi present “rising debt levels, since the higher costs and expenses put pressure on their ability to generate cash flow ‘ even more than what was expected. “
Fitch and Moody’s has also revised downwards the rating of Hi, after the TIM (operator Telecom Italia) has informed that did not mean further negotiations for a merger of assets.
Moody’s justified the recent cut to the “persistent increase in leverage and consumption of the company’s liquidity, which reduced financial flexibility and resulted in unsustainable capital structure “.
Pharol Portuguese (formerly PT SGPS) holds 27.5% stake in Hi and that the withdrawal of TIM regarding a merger led the Portuguese to sink listed on the Lisbon stock market in recent weeks .
Pharol closed the session on Thursday losing 6.37% to 14.7 cents – which was a new historic low. In 2016, it has lost 48% of value, with a market capitalization of 131 million euros.
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