Moody’s rates Tele Columbus bond, facilities B2

Moody's Investors Service said it assigned a B2 rating to the proposed €500 million senior secured bond due 2025 being issued by Tele Columbus AG and to its amended €830 million term loan and €50 million revolving credit facility.

At the same time, the agency affirmed the ratings of Tele Columbus, including the B2 corporate family rating and the B2-PD probability of default rating.

The ratings on the existing senior secured term loan tranches remain and Moody's said it expects they will be withdrawn upon repayment once the current refinancing transaction concludes successfully.

The outlook remains positive.

"While the transaction is leverage neutral, it will extend Tele Columbus' debt maturity profile, a credit positive,” Gunjan Dixit, Moody's vice president, senior credit officer and lead analyst for Tele Columbus, said in a news release.

“It will also help the company in achieving a fixed interest rate on a portion of its capital structure thereby insulating it against potential rises in the future base interest rates.”

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