S&P places Wind on watch

Standard & Poor's said it placed its ratings, including its BB- corporate credit rating, on Wind Telecomunicazioni SpA on CreditWatch with negative implications.

The recovery rating on the senior secured facilities and notes is unchanged at 2, indicating an expectation of substantial recovery in the event of a payment default.

The recovery ratings on Wind's third-lien notes and subordinated payment-in-kind notes remain unchanged at 4 and 6, respectively, indicating an expectation of average and negligible recovery for noteholders in the event of a payment default.

The CreditWatch placement follows Wind's announcement that it has approached its senior facilities lenders with a request to amend the loans' covenants, which were set in 2010.

The agency said the CreditWatch reflects the likelihood that S&P could lower the rating on Wind if the company is unable to increase the headroom on its covenants. S&P has therefore changed its assessment of Wind's liquidity profile to less than adequate.

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