Fitch assigns Claranet B+

Fitch Ratings said it assigned Clara.net Holdings Ltd. a first-time expected long-term issuer default rating of B+ with a stable outlook. Fitch also gave the company's proposed secured loan facilities an expected BB- with a an RR3 recovery rating.

“The rating of Claranet reflects high Fitch-projected funds from operations (FFO) gross leverage at 5.8x on a pro-forma basis for acquisitions at financial year to June 2021. We project this to decline to below 5x by FYE23, barring large debt-financed acquisition activity,” the agency said in a press release.

Proceeds of the secured loans will be used to refinance borrowings and for general corporate purposes.

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