Fitch views Tele Columbus negatively

Fitch Ratings said it revised Tele Columbus AG's outlook to negative from stable while affirming its long-term issuer default rating at B- and senior secured debt rating at B. The senior secured debt recovery rating is RR3.

“The outlook change to negative reflects TC's weak underlying performance as significant investments resulted in negative free cash flows (FCF) while facing a strategic challenge of adapting to a new regulatory regime. The latter is likely to see its bulk TV revenue come under pressure from mid-2024. A €75 million equity injection at end-2022 has helped short-term liquidity but is insufficient to achieve significant deleveraging and finance mass fiber upgrades over the medium term,” Fitch said in a statement.

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