Moody’s downgrades Trilogy

Moody’s Investors Service said it downgraded the corporate family rating of Trilogy International Partners LLC to Caa1 from B2 and its probability of default rating to Caa1-PD from B2-PD.

Also, the agency lowered Trilogy’s senior secured notes due 2022 to Caa2 from B3 and downgraded Trilogy’s speculative grade liquidity rating to SGL-4 from SGL-2, indicating weak liquidity.

“These downgrades are the result of expected weak revenue and EBITDA growth in Bolivia, rising debt leverage, weakening margins, the potential for rising bad debt trends due to Covid-19 stalling operational momentum at New Zealand and negatively impacting cash flow and weakening liquidity, Moody’s said in a press release.

Moody’s changed the outlook to negative from stable mirroring its view of Trilogy’s subscriber and EBITDA growth difficulties in Bolivia, competitive pressures and continued political uncertainty in Bolivia and liquidity and capital market access risks of refinancing $350 million of senior secured notes due May 2022, the agency said.

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