Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1
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Rating Action: Moody's upgrades Axtel's ratings
Global Credit Research - 06 Feb 2013
Up to USD 268 million in senior unsecured global notes affected
Mexico, February 06, 2013 -- Moody's Investors Service (Moody's) upgraded Axtel's Corporate Family Rating to Caa1 from Caa2. Simultaneously, Moody's upgraded Axtel's existing senior unsecured global notes to Caa2 from Ca. These actions complete the ratings review period started in December 27, 2012. The outlook on the ratings is stable.
The following debt instruments were affected:
USD 132,990 thousand in 7.627% senior unsecured notes due 2017: Upgraded to Caa2 from Ca
USD 134,574 thousand in 9% senior unsecured notes due 2019: Upgraded to Caa2 from Ca
Moody's does not rate Axtel's new notes, issued in January 2013.
RATINGS RATIONALE
The ratings upgrade was based on meaningful debt reduction of about USD 226 million associated with the exchange of USD 497 million in old notes for USD 271 million in new notes plus USD 83 million in cash. The upgrade further considers USD 88 million in additional net debt reduction with proceeds from the sale and leaseback of 883 towers to American Tower.
The 2017 and 2019 notes are rated one notch below Axtel's Caa1 Corporate Family Rating because they are effectively subordinated to the secured exchanged notes, which comprise 50% of the company's total debt outstanding.
Axtel's capital structure now consists of about USD 133 million in 7.625% senior unsecured global notes due 2017; USD 135 million in 9.00% senior unsecured notes due 2019; USD 249 million in recently issued 7% senior secured notes due 2020; and USD 22 million in 7% Peso-denominated senior secured convertible dollar-indexed notes due 2020. This capital structure translates into an improved leverage and interest coverage (as adjusted by Moody's) of 3.4 times proforma from 3.9 times actual and 4.0 times pro forma from 3.6 times actual, respectively, as of September 30, 2012.
Axtel's Caa1 corporate family rating reflects uncertainties around litigations on interconnection and termination rates both with Mexican mobile and wireline telcos. If final decisions are adverse to Axtel, these could have a significant impact on its liquidity position (for further detail, please refer to Moody's Credit Opinion on Axtel, at moodys.com). Although the sale of towers contributed to an improved liquidity profile, uncertainties around disputes on telecom tariffs plus the company's need to increase capex in order to grow revenues will continue to place pressure on its liquidity situation. In its assessment of Axtel's liquidity risk, Moody's assumed that Axtel will hedge foreign exchange exposure related at least to interest payments on the USD debt outstanding.
Axtel's ratings also consider the company's weak operating performance in recent years, given the highly competitive nature of the telecom industry in Mexico; a small revenue size; and the negative free cash flow generation. Somewhat mitigating these credit negatives is Axtel's greater network investments over the last couple of years and the quality of its network.
The stable ratings outlook is based on Moody's belief that, over the next 12 to 18 months, there will be no material change in Axtel's operating performance.
A strengthened liquidity position could support a positive rating action. Specifically, if the disputes on telecom rates result in a favorable decision for Axtel, its ratings could be upgraded. However, for any positive rating action to occur it is necessary that Axtel's core operations improve, with prospects for consistent positive free cash flow generation.
Should Axtel's liquidity position weaken further from unfavorable legal decisions on telecom rates, modest operating results and continued negative free cash flow generation, its ratings could experience downward pressure. An underperformance of Axtel's business that does not allow for an improvement in interest coverage from current low levels or that drive adjusted debt/EBITDA above 4 times for an extended period of time would also pressure the ratings.
The last rating action on Axtel was on December 27, 2012.
The principal methodology used in this rating was the Global Telecommunications Industry Methodology published in December 2010. Please see the Credit Policy page on Moody's - credit ratings, research, tools and analysis for the global capital markets for a copy of this methodology.
Based in Monterrey, Nuevo León, Mexico, Axtel is a competitive local telephone company providing bundled products including voice, data and Internet services to business and residential users within Mexico. Axtel is the second largest fixed line telecom in Mexico. During the last twelve months ended in September 30, 2012, the company's revenues reached USD 792 million with a 34.1% adjusted EBITDA margin.
REGULATORY DISCLOSURES
Information sources used to prepare the rating are the following: parties involved in the ratings and public information.
The rating has been disclosed to the rated entity prior to public dissemination.
A general listing of the sources of information used in the rating process, and the structure and voting process for the rating committees responsible for the assignment and monitoring of ratings can be found in the Disclosure tab in Moody's - credit ratings, research, tools and analysis for the global capital markets.
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on Moody's - credit ratings, research, tools and analysis for the global capital markets.
For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.
This Rating is subject to upgrade or downgrade based on future changes in the financial condition of the Issuer/Security, and said modifications will be made without Moody's de Mexico S.A. de C.V accepting any liability as a result.
Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.
Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.
Please see Moody's Rating Symbols and Definitions on the Rating Process page on Moody's - credit ratings, research, tools and analysis for the global capital markets for further information on the meaning of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on Moody's - credit ratings, research, tools and analysis for the global capital markets for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website Moody's - credit ratings, research, tools and analysis for the global capital markets for further information.
Please see Moody's - credit ratings, research, tools and analysis for the global capital markets for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
The ratings issued by Moody's de Mexico are opinions regarding the credit quality of securities and/or their issuers and not a recommendation to invest in any such security and/or issuer.
Please see the ratings tab on the issuer/entity page on Moody's - credit ratings, research, tools and analysis for the global capital markets for additional regulatory disclosures for each credit rating.
Nymia C. Almeida
Vice President - Senior Analyst
Corporate Finance Group
Moody's de Mexico S.A. de C.V
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
Mexico
JOURNALISTS: 001-888-779-5833
SUBSCRIBERS:52-55-1253-5700
Global Credit Research - 06 Feb 2013
Up to USD 268 million in senior unsecured global notes affected
Mexico, February 06, 2013 -- Moody's Investors Service (Moody's) upgraded Axtel's Corporate Family Rating to Caa1 from Caa2. Simultaneously, Moody's upgraded Axtel's existing senior unsecured global notes to Caa2 from Ca. These actions complete the ratings review period started in December 27, 2012. The outlook on the ratings is stable.
The following debt instruments were affected:
USD 132,990 thousand in 7.627% senior unsecured notes due 2017: Upgraded to Caa2 from Ca
USD 134,574 thousand in 9% senior unsecured notes due 2019: Upgraded to Caa2 from Ca
Moody's does not rate Axtel's new notes, issued in January 2013.
RATINGS RATIONALE
The ratings upgrade was based on meaningful debt reduction of about USD 226 million associated with the exchange of USD 497 million in old notes for USD 271 million in new notes plus USD 83 million in cash. The upgrade further considers USD 88 million in additional net debt reduction with proceeds from the sale and leaseback of 883 towers to American Tower.
The 2017 and 2019 notes are rated one notch below Axtel's Caa1 Corporate Family Rating because they are effectively subordinated to the secured exchanged notes, which comprise 50% of the company's total debt outstanding.
Axtel's capital structure now consists of about USD 133 million in 7.625% senior unsecured global notes due 2017; USD 135 million in 9.00% senior unsecured notes due 2019; USD 249 million in recently issued 7% senior secured notes due 2020; and USD 22 million in 7% Peso-denominated senior secured convertible dollar-indexed notes due 2020. This capital structure translates into an improved leverage and interest coverage (as adjusted by Moody's) of 3.4 times proforma from 3.9 times actual and 4.0 times pro forma from 3.6 times actual, respectively, as of September 30, 2012.
Axtel's Caa1 corporate family rating reflects uncertainties around litigations on interconnection and termination rates both with Mexican mobile and wireline telcos. If final decisions are adverse to Axtel, these could have a significant impact on its liquidity position (for further detail, please refer to Moody's Credit Opinion on Axtel, at moodys.com). Although the sale of towers contributed to an improved liquidity profile, uncertainties around disputes on telecom tariffs plus the company's need to increase capex in order to grow revenues will continue to place pressure on its liquidity situation. In its assessment of Axtel's liquidity risk, Moody's assumed that Axtel will hedge foreign exchange exposure related at least to interest payments on the USD debt outstanding.
Axtel's ratings also consider the company's weak operating performance in recent years, given the highly competitive nature of the telecom industry in Mexico; a small revenue size; and the negative free cash flow generation. Somewhat mitigating these credit negatives is Axtel's greater network investments over the last couple of years and the quality of its network.
The stable ratings outlook is based on Moody's belief that, over the next 12 to 18 months, there will be no material change in Axtel's operating performance.
A strengthened liquidity position could support a positive rating action. Specifically, if the disputes on telecom rates result in a favorable decision for Axtel, its ratings could be upgraded. However, for any positive rating action to occur it is necessary that Axtel's core operations improve, with prospects for consistent positive free cash flow generation.
Should Axtel's liquidity position weaken further from unfavorable legal decisions on telecom rates, modest operating results and continued negative free cash flow generation, its ratings could experience downward pressure. An underperformance of Axtel's business that does not allow for an improvement in interest coverage from current low levels or that drive adjusted debt/EBITDA above 4 times for an extended period of time would also pressure the ratings.
The last rating action on Axtel was on December 27, 2012.
The principal methodology used in this rating was the Global Telecommunications Industry Methodology published in December 2010. Please see the Credit Policy page on Moody's - credit ratings, research, tools and analysis for the global capital markets for a copy of this methodology.
Based in Monterrey, Nuevo León, Mexico, Axtel is a competitive local telephone company providing bundled products including voice, data and Internet services to business and residential users within Mexico. Axtel is the second largest fixed line telecom in Mexico. During the last twelve months ended in September 30, 2012, the company's revenues reached USD 792 million with a 34.1% adjusted EBITDA margin.
REGULATORY DISCLOSURES
Information sources used to prepare the rating are the following: parties involved in the ratings and public information.
The rating has been disclosed to the rated entity prior to public dissemination.
A general listing of the sources of information used in the rating process, and the structure and voting process for the rating committees responsible for the assignment and monitoring of ratings can be found in the Disclosure tab in Moody's - credit ratings, research, tools and analysis for the global capital markets.
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on Moody's - credit ratings, research, tools and analysis for the global capital markets.
For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.
This Rating is subject to upgrade or downgrade based on future changes in the financial condition of the Issuer/Security, and said modifications will be made without Moody's de Mexico S.A. de C.V accepting any liability as a result.
Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.
Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.
Please see Moody's Rating Symbols and Definitions on the Rating Process page on Moody's - credit ratings, research, tools and analysis for the global capital markets for further information on the meaning of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on Moody's - credit ratings, research, tools and analysis for the global capital markets for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website Moody's - credit ratings, research, tools and analysis for the global capital markets for further information.
Please see Moody's - credit ratings, research, tools and analysis for the global capital markets for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
The ratings issued by Moody's de Mexico are opinions regarding the credit quality of securities and/or their issuers and not a recommendation to invest in any such security and/or issuer.
Please see the ratings tab on the issuer/entity page on Moody's - credit ratings, research, tools and analysis for the global capital markets for additional regulatory disclosures for each credit rating.
Nymia C. Almeida
Vice President - Senior Analyst
Corporate Finance Group
Moody's de Mexico S.A. de C.V
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
Mexico
JOURNALISTS: 001-888-779-5833
SUBSCRIBERS:52-55-1253-5700
captain sparrow
Forumer storico
per chi ama il rischio
petrol ad, prospetto visibile sul sito dell'emittente A0G0NM | Petrol AD-Anleihe: 8.375% bis 26.01.2017 | finanzen.net
petrol ad, prospetto visibile sul sito dell'emittente A0G0NM | Petrol AD-Anleihe: 8.375% bis 26.01.2017 | finanzen.net
nik.sala
Money Never Sleeps
Zorba,
tra l'altro il bond in €, passato l'empasse di ieri dove è rimasto fermo, sembra giri sui 67
XS0468883672
https://www.brokerjet.at/search/ins...search&pbbck=150ad7142aefbe406fa32ab211e99f08
rockytamtam
Forumer storico
Due bei bond . Non fossero olandesi si potrebbero comprare.
Camajan
Forumer storico
ripropongo x avere qualke parere ... denghiù
argotone
il diversificatore
interessanti ma taglio 100k
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