S&P boosts MasMovil

S&P said it raised its rating for Lorca Telecom Bidco SAU (MasMovil) to BB from B and the ratings on the group's senior secured debt to BB+ from B, and on its unsecured notes to B+ from CCC+.

MasMovil completed its merger with Orange’s Spanish operations on Tuesday after the joint venture secured the necessary regulatory approvals.

“Our rating on the combined group reflects our view of the JV's bb- stand-alone credit profile and moderately strategic status to the Orange group. We consider the JV's credit profile has improved compared with that of MasMovil on a stand-alone basis, supported by a stronger competitive position in the challenging Spanish market, its larger scale and diversity of operations, and improved asset ownership,” S&P said in a press release.

The agency said it estimates the JV's starting adjusted debt to EBITDA at about 5.5x and expects it to decline to 5.2x by the end of 2024 and to 4.5x by 2025.

The outlook is stable.

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