Rating agency Moody’s has downgraded Greek mobile operator Wind Hellas’ probability-of-default rating from Caa3 to D, and its corporate family rating from Caa3 to C.
It also downgraded the Weather Finance III-owned group’s senior secured notes issued at…
Rating agency Moody’s has downgraded Greek mobile operator Wind Hellas’ probability-of-default rating from Caa3 to D, and its corporate family rating from Caa3 to C.
It also downgraded the Weather Finance III-owned group’s senior secured notes issued at Hellas Telecommunications (Luxembourg) V to C from Caa3, and the senior unsecured notes issued at Hellas Telecommunications (Luxembourg) III to C from Ca.
Earlier this month, Wind Hellas announced that it was once again up for sale, following a creditor agreement. The company, which is being advised by Morgan Stanley and White & Case, is hoping that a transaction will happen by November 5, when the creditor agreement lapses.
Moody’s says it initiated the review process on June 16, after Wind Hellas accepted the terms of a standstill agreement by holders of 80.6% of its senior secured floating rate notes.
The standstill agreement is now between Wind Hellas and its revolving credit facility lenders, hedging banks and senior secured note holders to: (i) suspend amortisation payments under the RCF, interest payments to the senior secured note holders, and settlement payments under the swap agreements; and (ii) waive certain default and cross-default clauses, as well as covenant breaches, during the suspension period, which ends on November 5.
It follows the company’s failure to make various required payments, including under the RCF on June 30 and to senior secured note holders on July 15.
Moody’s said it considers that most of Wind Hellas’ debt has defaulted, and expects that the interest payment due on the senior unsecured notes on October 7 is unlikely to be met. The ratings company believes that group recovery is likely to be low given the company’s weak and declining market position, although the senior secured floating rate notes should realize greater recovery than the senior unsecured notes.
Moody’s last rated, and downgraded, Wind Hellas on June 16.
For the year ended May 2010, Wind Hellas reported E974m (US$1.26bn) in revenues and E263m (US$340m) in adjusted EBITDA.
