Fitch rates Wind Acquisition notes B+

Fitch Ratings said it assigned an expected B+ rating with a recovery rating of 4 to the anticipated €250 million tap issuance of additional fungible senior notes to be issued by Wind Acquisition Finance SA. The rating is contingent upon the issuance of at least €250 million of notes with proceeds of at least €258 million used to prepay Wind's senior secured facilities, the agency said.

Fitch also affirmed Wind Telecomunicazioni SpA's B+ issuer default rating, B short-term rating, the BB rating with a recovery rating of 2 assigned to Wind's €6.85 billion first-priority senior secured facilities and the BB rating with a recovery rating of 2 assigned to its €700 million second-lien notes. The outlook is stable.

Given the very high recovery rates associated with the senior secured loan that Wind intends to partly pre-pay using proceeds from the tap issue, the prepayment would result in a significant increase in the value available in a distress scenario for the benefit of subordinated senior noteholders, enhancing their recovery prospects as indicated by the upgrade, Fitch said.

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