Free Trial

Cellnex Upgraded To BBB- By S&P

COMMUNICATIONS


  • EUR spreads rallied into the close post-upgrade with most lines 11-12bps tighter DoD; while the upgrade was widely anticipated, management had targeted an upgrade this year as opposed to within hours of their newly announced MT targets.
  • S&P view the renewed leverage target, Irish disposal and cash-flow focused capital policy as likely resulting in expected S&P-adj leverage of 6.7x/6.3x in 2024/25 (from 7.3x/7.5x in 2023/22).
  • S&P don’t think latest divestment will alter scale/diversification/business risk.
  • Expect earnings and CF to improve organically over next year, extracting benefits from lease optimisation plans.
  • Rating changes if leverage exceeds 6x/7x thresholds for BBB/BBB- though they see an upgrade as unlikely given the shareholder remuneration policy outlined.

To read the full story

Close

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.