S&P downgrades Entel

S&P said it lowered its corporate credit and issue-level ratings on Empresa Nacional de Telecomunicaciones SA (Entel) to BBB- from BBB.

The outlook is stable.

The agency said the downgrade reflects an expectation of a delay in the leverage reduction that S&P was previously expecting because of continued intense competition in the mobile business in Chile, a delay in reaching breakeven EBITDA in Peru, and meaningful capital expenditures plans for the next two years.

“We expect the company to post debt to EBITDA above 3.0x in 2018 and close to 3.0x in 2019, what led us to revise its financial risk profile to significant from intermediate,” S&P said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.