Cell C has shot itself in the foot

Kevin Lancaster

Kevin Lancaster

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Cell C has shot itself in the foot

Ratings firm S&P Global recently downgraded Cell C’s corporate credit rating to the lowest junk-level rating on its scale.

The downgrade is mainly a result of Cell C missing an interest payment on its senior secured bonds, but S&P Global’s explanation also points to uncertainty regarding the operator’s spectrum assets.
 
Drove past their fancy head office this afternoon, wonder how much that cost them?

Also wonder when the next price increases will happen?
 
A secured bond is a type of bond that is secured by the issuer's pledge of a specific asset, which is a form of collateral on the loan. In the event of a default, the bond issuer passes title of the asset onto the bondholders.
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^In case anyone wondered.
 
Spectrum uncertainty is not an issue when the buyer has no competetive business in South Africa.

It is not the first time prospective buyer influencing someone else credit rating.
 
sajunky said:
Spectrum uncertainty is not an issue when the buyer has no competetive business in South Africa.

It is not the first time prospective buyer influencing someone else credit rating.
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Blu label is SA, or are you referring to another buyer?
 
Possibly Vodacom. They made in the past couple dirty trick for a new spectrum.
 
sajunky said:
Spectrum uncertainty is not an issue when the buyer has no competetive business in South Africa.

It is not the first time prospective buyer influencing someone else credit rating.
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I don't think you understand the issue here....
 
sajunky said:
What do you understand and which of my comment you are refering to?
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The whole comment, it doesn't even begin to understand the issue, or the complexities involved.

And a prospective buyer influencing someone elses credit rating? You do realise, the only people influencing Cell C's credit rating are themselves when they don't bloody pay what they are supposed to.
 
ToxicBunny said:
The whole comment, it doesn't even begin to understand the issue, or the complexities involved.

And a prospective buyer influencing someone elses credit rating? You do realise, the only people influencing Cell C's credit rating are themselves when they don't bloody pay what they are supposed to.
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The highlighted part is not in line with the body of the article. About Cell C in default is just one sentence, not even a paragraph. I do agree with it. The rest of the article (including a title) is a speculation how "Cell C has shot itself in the foot".

I do say that if it is true that spectrum uncertainty is an issue for the rating agency, then this agency is being influenced by a prospective buyer. Not trustworthly at all.
 
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sajunky said:
The highlighted part is not in line with the body of the article. About Cell C in default is just one sentence, not even a paragraph. I do agree with it. The rest of the article (including a title) is a speculation how "Cell C has shot itself in the foot".

I do say that if it is true that spectrum uncertainty is an issue for the rating agency, then this agency is being influenced by a prospective buyer of Cell C. Not trustworthly at all.
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Ummm that one sentence is pretty damned important, and the rest of the story revolves around the spectrum uncertainty bit in a few ways.

And no, this agency isn't being influenced by a prospective buyer. Cell C fscked themselves by missing the payment which puts them in a possible bankruptcy position (of their OWN doing), and the regulatory environment and prior actions in this country make the spectrum assets somewhat uncertain which makes valuing the assets difficult.
 
ToxicBunny said:
And no, this agency isn't being influenced by a prospective buyer. Cell C fscked themselves by missing the payment which puts them in a possible bankruptcy position (of their OWN doing), and the regulatory environment and prior actions in this country make the spectrum assets somewhat uncertain which makes valuing the assets difficult.
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You do confirm that spectrum uncertainty is an issue for you, then I disagree. Any buyer who has no competetive business in South Africa will be able to inherit Cell C spectrum easily, they are welcome. As spectrum is an issue indeed, then some competetive giants are influencing rating agency, this is my say. A rubbish agency.
 
sajunky said:
You do confirm that spectrum uncertainty is an issue for you, then I disagree. Any buyer who has no competetive business in South Africa will be able to inherit Cell C spectrum easily, they are welcome. As spectrum is an issue indeed, then some competetive giants are influencing rating agency, this is my say. A rubbish agency.
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You really have no idea about how business ratings/bankruptcy/business valuation etc actually work do you?
 
sajunky said:
You do confirm that spectrum uncertainty is an issue for you, then I disagree. Any buyer who has no competetive business in South Africa will be able to inherit Cell C spectrum easily, they are welcome. As spectrum is an issue indeed, then some competetive giants are influencing rating agency, this is my say. A rubbish agency.
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Nope, not that easily.
 
sajunky said:
This is easy. Investors who can prove they have no anticompetetive relations or intentions will be able to buy cell C assets, including spectrum.
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No its not that easy, and never will be.
 
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