Moody's upgrades Cell C
Global credit ratings agency Moody’s Investors Service has upgraded South African cellular operator Cell C’s Corporate Family Rating (CFR) and Probability of Default Rating to B3 from Caa1.
Moody’s also raised the ratings on the USD/EUR senior secured notes due 2012 to B2 from B3 and upgraded the ratings on Cell C’s EUR/USD senior subordinated notes due 2015 to Caa2 from Caa3.
This action concludes the review for a possible upgrade commenced on May 28, 2008. The rating outlook is stable.
The action follows the partial buy back by Saudi Oger of the USD and EUR bonds issued by Cell C, at 101% percent of face value.
The buyback offer was triggered by Saudi Telecom buying a 35% equity stake in Oger Telecom (which directly and indirectly owns 75% of Cell C), which was regarded by Saudi Oger as a change of control under the terms of the Cell C bonds, Moody’s said.
Moody’s said that the decision to upgrade Cell C’s ratings reflects both Cell C’s improved operating performance and Moody’s attribution of greater expected support from its shareholder, Saudi Oger.
Loading ...