qquebec
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Risultati discreti, ma guidance rivista al ribasso. Prezzo bond su Francoforte
Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 2 (3 lettori)
- Creatore Discussione gionmorg
- Data di Inizio
bia06
Listen other's viewpoint avoid conflicts & wars.
Mexican Telecom Co. Axtel Downgraded To 'BB-' From 'BB' On Pressured EBITDA And Leverage; Outlook Negative
Even though our previous forecast for the company from Dec. 31, 2021, already included lower revenue generation from government entities through the first half of 2022, we didn't expect some extraordinary pressures on Axtel's EBITDA generation, such as the provisions related to the amount due under telecom company Altan's bankruptcy proceedings of about MXN300 million (plus tax) as reported in 2021 audited financial statements. Axtel is supporting Altan in the $388 million financing agreement reached by Altan in June 2022 with the federal government, creditors, shareholders, and customers. This will translate in EBITDA margins for Axtel below 30% for 2022 (versus our previously expected 35%).
Because we expect Alfa to complete the spin-off of Axtel in upcoming months, we expect Axtel to focus its decision-making on its future growth and on mitigating the negative effects of high competition in the market. We will continue to monitor Axtel's growth strategy and customer growth in the next 12 months to assess the company's effectiveness and positioning in the industry. Otherwise, this could lead to a weakening of the business risk profile.
Axtel has an upcoming maturity of its senior unsecured notes in 2024. In our view, the company will continue to evaluate and address in the coming months different refinancing options through discussions with financial institutions to refinance its notes well ahead of their maturity. We believe Axtel has well-established access to different liquidity sources and relationships with banks. We will continue monitoring this refinancing strategy and if the company does not provide any updates within the next 12 months, we could see refinancing risks that could trigger a downgrade.
- Mexican integrated telecommunication company (ITC), Axtel S.A.B. de C.V. (Axtel), reported a significant decline in EBITDA generation in the last 12 months as of June 30, 2022, mainly related to a continued decline in services provided to federal entities. This has pressured Axtel's leverage, and we now don't expect its debt-to-EBITDA ratio to fall below 3.0x until 2024 (from 3.6x as of June 30, 2022).
- We expect Alfa S.A.B. de C.V. (Alfa; BBB-/Positive/--) to complete its spin-off of Axtel from the group in the coming months, after the holding company's announcement on July 12, 2022.
- On Aug. 24, 2022, S&P Global Ratings downgraded its issuer-credit and issue-level ratings on Axtel to 'BB-' from 'BB'.
- The negative outlook reflects our expectation that the decline in revenues and customer losses will not be offset in the next 12 months, reflecting a weakening of its business risk profile. This could cause Axtel to continue to lose market share, have declining cash flow, and increase refinancing risk for its next maturity in 2024.
Even though our previous forecast for the company from Dec. 31, 2021, already included lower revenue generation from government entities through the first half of 2022, we didn't expect some extraordinary pressures on Axtel's EBITDA generation, such as the provisions related to the amount due under telecom company Altan's bankruptcy proceedings of about MXN300 million (plus tax) as reported in 2021 audited financial statements. Axtel is supporting Altan in the $388 million financing agreement reached by Altan in June 2022 with the federal government, creditors, shareholders, and customers. This will translate in EBITDA margins for Axtel below 30% for 2022 (versus our previously expected 35%).
Because we expect Alfa to complete the spin-off of Axtel in upcoming months, we expect Axtel to focus its decision-making on its future growth and on mitigating the negative effects of high competition in the market. We will continue to monitor Axtel's growth strategy and customer growth in the next 12 months to assess the company's effectiveness and positioning in the industry. Otherwise, this could lead to a weakening of the business risk profile.
Axtel has an upcoming maturity of its senior unsecured notes in 2024. In our view, the company will continue to evaluate and address in the coming months different refinancing options through discussions with financial institutions to refinance its notes well ahead of their maturity. We believe Axtel has well-established access to different liquidity sources and relationships with banks. We will continue monitoring this refinancing strategy and if the company does not provide any updates within the next 12 months, we could see refinancing risks that could trigger a downgrade.
bia06
Listen other's viewpoint avoid conflicts & wars.
Adani Group is "Deeply Overleveraged" Says CreditSights as Dollar Bonds Weaken
Fitch Group company CreditSights warned in a report that Adani Group is "deeply overleveraged", adding that the group's debt-funded growth plans could spiral into a massive debt trap in a worst-case scenario and lead to a possible distress or default. CreditSights said that Adani Group's expansion has been reliant on bank loans, internal accruals and debt market funding with business diversification across the spectrum. The research house compares Adani Group to its peer Reliance Industries, noting that while both are competing for market share in a few new economy businesses, a key difference is that the latter has been on a deleveraging path. It added that Adani companies also have "poor interest cover and cash outflows across virtually all its entities, and is at greater financial risk". Despite the negatives, CreditSights however does highlight that the group has healthy relations with the ruling party of the country, ensuring minimal opposition to its growth plans alongside the government's infrastructure and technology impetus also lending support. The report further mentioned that Adani Group has "strong access to diverse funding channels (onshore and offshore banks and capital markets), relatively stable recurring-revenue generating infrastructure assets, presence in key sectors of the economy and the positive infrastructure-favored macro backdrop in the country".
Adani Group companies' dollar bonds have been trading weaker since the report.
Fitch Group company CreditSights warned in a report that Adani Group is "deeply overleveraged", adding that the group's debt-funded growth plans could spiral into a massive debt trap in a worst-case scenario and lead to a possible distress or default. CreditSights said that Adani Group's expansion has been reliant on bank loans, internal accruals and debt market funding with business diversification across the spectrum. The research house compares Adani Group to its peer Reliance Industries, noting that while both are competing for market share in a few new economy businesses, a key difference is that the latter has been on a deleveraging path. It added that Adani companies also have "poor interest cover and cash outflows across virtually all its entities, and is at greater financial risk". Despite the negatives, CreditSights however does highlight that the group has healthy relations with the ruling party of the country, ensuring minimal opposition to its growth plans alongside the government's infrastructure and technology impetus also lending support. The report further mentioned that Adani Group has "strong access to diverse funding channels (onshore and offshore banks and capital markets), relatively stable recurring-revenue generating infrastructure assets, presence in key sectors of the economy and the positive infrastructure-favored macro backdrop in the country".
Adani Group companies' dollar bonds have been trading weaker since the report.
IL MARATONETA
Forumer storico
Il prezzo è pari al 92% del v.n. consegnato per il titolo 1598700 e al 99,5% del v.n.
consegnato per il titolo 2423310, per entrambi è incluso l’Early Tender Premium del 5%.
questo in succo quello che che ci danno ..... il 5% è un premio oltre al 92% oppure è compreso?
fabriziof
Forumer storico
Non è un richiamo ma un’offerta di riacquisto
United States Steel Corporation, Big River Steel LLC and BRS Finance Corp. Commence Tender Offers to Purchase for Cash $300,000,000 Aggregate Principal Amount of Securities
United States Steel Corporation (NYSE: X) (“U. S. Steel” or the “Company”) and its subsidiaries, Big River Steel LLC, a Delaware limited liability com
www.businesswire.com
fedro10
è la somma che fa il totale...
Goldwasser Exchange
iguanito
Forumer storico
esattoNon è un richiamo ma un’offerta di riacquisto
United States Steel Corporation, Big River Steel LLC and BRS Finance Corp. Commence Tender Offers to Purchase for Cash $300,000,000 Aggregate Principal Amount of Securities
United States Steel Corporation (NYSE: X) (“U. S. Steel” or the “Company”) and its subsidiaries, Big River Steel LLC, a Delaware limited liability comwww.businesswire.com