Moody's cuts UNE EPM Telecomunicaciones

Moody's Investors Service said it assigned a Ba1 corporate family rating to UNE EPM Telecomunicaciones, SA (Tigo Une) and simultaneously withdrew the company’s Baa3 long-term issuer rating. Moody’s also placed the Ba1 CFR under review for downgrade.

“The Ba1 rating reflects Tigo UNE’s persistently weak profitability when compared to peers in the same rating category despite the positive trend in subscriber growth, as well as tight liquidity position when considering upcoming debt maturities and capex deployment needs.

“The rating also considers the company´s strong position in the Colombian market, holding about 26% of the mobile market share and about 29% of the fixed broadband market, as well as its small scale when compared to global peers,” the agency said in a press release.

Moody’s noted Tigo Une reported negative free cash flow as adjusted by Moody's since 2021, which it expects to continue for the next two years.

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