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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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- We bulleted on Cellnex’s affirmation at BBB-[S] on 15 January in which Fitch saw organic deleveraging capacity of 0.4x-0.6x per year against an end-2023 estimate of 8.2x.
- S&P affirmed the company in November with forecasted S&P leverage of 7x by end-2024 against their 7x rating trigger.
- With management targeting leverage <7x and an IG rating by end-2024, there is potential a rating upgrade this year though this depends on asset disposal progress.
- Upgrade sentiment has improved though on last week’s RTRS sources piece that Cellnex is contemplating the sale of a minority stake in its Polish unit, with the unit's value exceeding EUR 3bn (excl debt). A formal process is reported to commence before the summer.
- Cellnex has already disposed of half of its Swedish/Danish business and further plans to sell its Irish/Austrian business.
- The Cellnex curve has performed strongly since mid-Jan, tightening against telco tower peers (admittedly a small comp space so we have included a US peer, American Towers, in the below chart).
- The upcoming 29 Feb results and 05 March CMD will be closely watched for progress towards its deleveraging targets to gauge the likelihood of an impending rating upgrade.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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