S&P lowers Eolo

S&P said it lowered its ratings on Eolo SpA and its €375 million of senior secured notes to B- from B.

“The downgrade reflects Eolo's weaker credit metrics and the risk that leverage may increase further in the next 12 months. We see a limited prospect of reduced leverage given weaker growth prospects than initially anticipated amid a lower pricing environment, in combination with a flat EBITDA margin and still-high growth network investments,” the agency said in a press release.

S&P said it forecasts Eolo to widen its revenue by 5%-6% in fiscal years 2023 and 2024, down from about 9.5% previously forecasted and its S&P Global Ratings' adjusted EBITDA margin, after customer premises equipment (CPE) receiver installation costs will remain flat at 45%-46% in the next 18 months, compared to 45% in fiscal 2022.

The outlook is stable.

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