S&P slices Mobileum

S&P said it downgraded its ratings for Mobileum (Matrix Holdings Inc.) to CCC from B-.

“The downgrade reflects our belief that Mobileum's liquidity position will continue to deteriorate. This reflects our expectation for weak earnings stemming from declines in the company's non-recurring revenue, as telecom operators delay investments, coupled with headwinds from higher debt balances. In 2023, we expect Mobileum will record a free operating cash flow (FOCF) deficit of $40 million-$50 million due partially to a 40% increase in its interest expense and an approximately 15% drop in its revenue,” S&P said in a press release.

The agency said it considers Mobileum’s capital structure unsustainable.

The outlook remains negative.

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