S&P cuts Wind Tre view to negative

S&P said it revised its outlook on Wind Tre SpA and on its wholly owned subsidiary, Wind Acquisition Finance SA, to negative from stable. At the same time, S&P affirmed its BB- long-term issuer credit rating.

The BB- issue rating on Wind Tre's senior secured debt was affirmed. The recovery rating on the debt remains at 3, indicating an expectation of meaningful recovery (50%-70%; rounded estimate 60%) in the event of a default.

“We revised the outlook to negative to reflect our view that unexpected adverse developments since late 2017 in the Italian wireless market could compromise our base-case expectation that Wind Tre's absolute EBITDA will be resilient in 2018 and grow thereafter, and that S&P Global Ratings-adjusted leverage will drop toward 5.2x by 2019 from about 5.8x in our estimated 2017 ratio,” S&P said in a news release.

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