S&P Global released a report today downgrading Cell C to D (Default), while its rating of Cell C\u2019s senior secured bonds are now rated at Default (D).<\/p>\n
There is \u201can increased likelihood that Cell C will be unable to repay all or substantially all of the obligations as they come due, unless it is able to restructure its debt and recapitalize its balance sheet,\u201d S&P said in a statement on Thursday.<\/p>\n
In response to the downgrade, Cell C said the suspension of interest payments in July is part of its wider initiatives to improve liquidity and to restructure the company\u2019s balance sheet.<\/p>\n
\u201cCell C continues to work proactively with all stakeholders to improve its liquidity, debt profile and long-term competitiveness as part of its strategic roadmap,\u201d the company said.<\/p>\n
Cell C added that it has entered into a term sheet to expand the provisions of its roaming agreement with MTN, to better control its capital expenditure and operating costs.<\/p>\n
\u201cAn agreement will lay the groundwork for a broader national roaming agreement, supporting South Africa\u2019s policy goals of avoiding network duplication,\u201d Cell C said.<\/p>\n
\u201cThe network services provided will drive efficiencies in the delivery of services to its consumers by Cell C.\u201d<\/p>\n
The company added that its expanded roaming agreement together with the recapitalisation transaction will help it to achieve sustainability.<\/p>\n
\u201cWe are committed to simplifying the business model, right-sizing and optimising the business,\u201d Cell C CEO Douglas Craigie Stevenson said.<\/p>\n
\u201cWe have engaged with S&P throughout this process and believe we are on the right track with the transactions currently being finalised.\u201d<\/p>\n
S&P Global released a report today downgrading Cell C to D (Default).<\/p>\n","protected":false},"author":23,"featured_media":262661,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[19],"tags":[355,35,39150],"class_list":["post-317267","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-cell-c","tag-headline","tag-sp-global"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/317267"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=317267"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/317267\/revisions"}],"predecessor-version":[{"id":317271,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/317267\/revisions\/317271"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/262661"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=317267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=317267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=317267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}