Fitch Rates WOM BB-

Fitch Ratings said it assigned first-time ratings of BB- to WOM SA. In addition, Fitch affirmed the other ratings in the corporate structure at BB-, including WOM Mobile SA's long-term foreign-currency issuer default rating, long-term local-currency IDR, Chilean peso-denominated credit facilities and dollar-denominated notes. The outlook is stable.

The ratings reflect the company's elevated leverage and lack of diversification, as well as Fitch's expectation the company will continue to grow robustly and profitably. The company's competitive position has improved dramatically since Novator purchased and rebranded Nextel Chile SA's assets in 2015, with mobile market share improving from 2% to 18%.

Fitch said it expects the company to reduce its leverage after the transaction, as rapid revenue expansion and cost efficiencies enable EBITDA margins of around 30% in the medium term.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.