S&P nips VTR Finance

S&P said it lowered its ratings on VTR Finance NV to B from B+, its senior notes to B- from B and VTR Comunicaciones SpA's senior secured bonds to B from B+.

“Weaker profitability of the Chilean cable and broadband operator, VTR Finance NV (VTR), and Claro Chile resulted in higher leverage than we expected. We believe the company will continue underperforming at least over the next year, despite potential synergies coming from the joint venture (JV) due to intense competition in Chile,” the agency said in a press release.

S&P noted that as of September, VTR’s S&P Global Ratings-adjusted EBITDA margin declined to 24% for the last 12 months from 29.9% in December 2021 and 38.6% in December 2020.

The outlook is negative.

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