Moody's changes VTR outlook to negative

Moody's Investors Service said it changed the outlook to negative from under review and confirmed VTR Finance NV’s Ba3 corporate family rating, the B1 rating of VTR's $550 million of 6 3/8% senior unsecured notes and the Ba3 rating of VTR Comunicaciones SpA's $410 million of 4 3/8% and $480 million of 5 1/8% senior secured notes.

This rating action concludes the review for upgrade started on Oct. 1, the agency said.

“This rating action reflects Moody's view that, while the resulting entity will be better positioned to operate, improve profitability and post stronger credit metrics; the competitive environment in Chile, coupled with persistent high inflation expected at 9% in 2022, will challenge the reversal of the weaker than expected trend in VTR's operating metrics and market share, making it difficult to meet Moody's previous expectations, in line with the JV's net leverage target between 2.8x and 3.5x and that negatively compares to Moody's current estimates that net leverage should remain above 4x, the agency said in a press release.

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