S&P rates Wind Hellas notes B

S&P said it assigned a preliminary B long-term corporate credit rating to Largo Intermediary Holdings Ltd., the parent of Wind Hellas Telecommunications SA.

The agency also assigned a preliminary B long-term corporate credit rating to Crystal Almond Sarl, Largo's wholly owned financing subsidiary.

Crystal Almond is considered a core group entity.

The outlook is stable.

The agency also said it assigned a preliminary B rating to Wind Hellas's proposed senior secured notes.

S&P said it assigned the preliminary rating following news that Wind Hellas plans to issue €250 million of senior secured notes with the intention of repaying the outstanding amount of a €175 million current term loan and providing additional liquidity for accelerating investment outlays in coming years.

These include network investment plans in the fixed-line segment since Wind Hellas is considering participating in the bidding process for deployment of a next generation network, the agency said, and the remaining license payments from the spectrum auction allocated in 2014.

The company's credit metrics and liquidity could materially weaken if the economic situation in Greece were to deteriorate again, S&P added.

These weaknesses are partly offset by Wind Hellas's improved mobile network quality following the spectrum auction in 2014, the agency said.

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