Moody's cuts Trilogy outlook to negative

Moody's Investors Service said it changed the outlook on the ratings of Trilogy International Partners LLC to negative from stable, reflecting the slower than expected ramp up of subscribers in the acquired Dominican Republic markets, in addition to the curtailed growth in Haiti due to the softening economy.

The company is addressing the underperformance by expanding its GSM network coverage and enhancing marketing efforts in the Dominican Republic, the agency noted.

However, as these initiatives are expected to take several quarters to show up in the results, Moody's said that the increased leverage and reduced cash flow in the intervening period adds a degree of risk to the company's credit profile.

Trilogy's B2 corporate family rating reflects Moody's view that in addition to operating and competitive challenges, Trilogy faces considerable political and regulatory risks as essentially all of its revenues are derived from wireless operations in emerging economies.

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