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Fitch Downgrades TalkTalk Telecom Group From B- to CCC

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New Profile: NR/B-[N]/CCC


  • • Fitch see net EBITDA leverage of ~10x in FY24, indicating poor liquidity and a pressing need for refinancing by November 2024.
  • Consistently negative Fitch-adjusted FCF (expected to continue out to FY27) and an upcoming RCF repayment in November were contributing factors, as is the execution risk in TTG’s restructuring and equity raising plans.
  • They note deteriorated operating metrics in 1H24, including customer loss and a drop in EBITDA margin to 6%, only rising to 8% in FY25.
  • Fitch see limited earnings growth as inflation falls, impacting CPI-linked pricing.

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