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Prospect News home > News index > List of issuers T > Headlines for TalkTalk Telecom Group plc > News item |
Fitch rates TalkTalk notes BB-
Fitch Ratings said it assigned a long-term issuer default rating of BB- to TalkTalk Telecom Group plc with a stable outlook.
The agency also said it assigned an expected rating of BB- with recovery rating of RR4 to the company's proposed new unsecured notes.
The proceeds from the issuance will be principally used to repay some of short-term borrowings under the existing revolving credit facilities, Fitch said.
The ratings are supported by the company’s sustainable market position as a niche value-for-money operator in the U.K. telecoms market, the agency said.
Future costs savings from several company initiatives, dark fiber extension and reduction in wholesale charges should gradually improve the company's profitability over the next three years, Fitch explained.
But the company’s reliance on regulated BT wholesale products translates to a lower-than-average profitability for this sector, the agency said.
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