Moody's rates Trilogy loan B2

Moody's Investors Service said it assigned B2 corporate family and probability-of-default ratings to Trilogy International Partners LLC and a B2 (LGD4, 51%) rating to its senior secured term loan facility.

The outlook is stable.

The proceeds will be used to refinance company debt and for general corporate purposes.

Moody's said the B2 corporate family rating reflects Trilogy's political and regulatory risks given that the bulk of its revenue comes from wireless operations in emerging economies, such as Haiti, Bolivia, and the Dominican Republic.

The rating also considers that a portion of the company's cash flows are generated in U.S. dollars - which mitigates foreign exchange risks arising from servicing U.S dollar-denominated debt obligations with local cash flows, which can't be effectively hedged - and Trilogy's favorable growth prospects in three countries with relatively low levels of wireless penetration. Also, the B2 rating reflects Moody's opinion that the company's initial adjusted total leverage of roughly 2.5 times may shrink to less than 2 times by the end of next year.

The stable outlook reflects Moody's belief that Trilogy is likely to steadily grow its operating profits over the next couple of years, although free cash flow is likely to remain modest, and that the company is likely to continue to diversify its risks away from Haiti.

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