Fitch pulls Tele Columbus from watch

Fitch Ratings said it affirmed Tele Columbus AG’s long- term issuer default rating at B- and senior secured debt rating at B with an RR3 recovery rating and removed them from rating watch positive.

The affirmation and watch removal follow a €475 million equity injection and new shareholders backed by Morgan Stanley Infrastructure Partners taking 94% control of the company.

“TC is facing a strategic challenge of adapting to a new regulatory regime with approximately 50% of its 2020 TV revenue under threat, by management estimates. The €475 million capital increase in May 2021 was not sufficient to significantly improve TC's leverage and provide it with medium-term funding in view of the large capex under its 'fiber champion' project,” Fitch said in a press release.

The outlook is stable.

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