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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.
COMMUNICATIONS
- Cellnex (NR/BBB-[S]/BBB-[S]) reported solid results last week; Rev/EBITDA in-line, FCF beat expectation at upper end of guidance which combined with the CMD announcements speak to continuity in the credit narrative with a pathway now outlined to reach a lowered leverage target of 5-6x.
- Management commentary at the CMD was reassuring with guidance of little to no M&A activity plans; the primary and secondary focuses being the IG upgrade and the subsequent return of capital to shareholders as outlined in the CMD press release.
- The S&P upgrade was earlier than expected, coming during the CMD as opposed to the management target of this year. Spreads rallied by up to ~11bps into the close though moves are more muted today at up to ~2bps of tightening.
- Cellnex already trades quite close to both a BBB TMT curve (and away from a BB one) and close to peer American Tower (Baa3[S]/BBB-[S]) as per the below chart so a significant degree of optimism was already likely priced.
- We’ve also seen surveys of investor predictions going into the CMD and note that the major points are broadly in line with expectations.
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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