Moody’s puts Millicom, Comcel on downgrade review

Moody’s Investors Service said it placed on review for downgrade Millicom International Cellular SA’s (Millicom) Ba1 corporate family rating, Ba1-PD probability of default rating and Ba2 ratings on its senior unsecured notes.

Moody’s also said it placed on downgrade review the ratings of subsidiary Comcel Trust, including its corporate family rating of Ba1 and Ba1 rating on its senior unsecured regular bond/debenture.

The downgrade review follows news that Millicom has reported to law enforcement authorities in the United States and Sweden that potential improper payments were made on behalf of its joint venture in Guatemala, the agency said.

Millicom also disclosed that it has hired an international lawyers to conduct independent investigations on the matter with the support of Millicom’s management team, Moody’s said.

At this time, there is very little additional information so it is difficult to estimate the timing and the legal outcome of the investigation, the agency said, or the size of potential monetary penalties.

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