Moody’s has assigned a Ba1 rating to a planned US$300m issue by Colombian telco ETB to finance capex.
ETB, majority-owned by Bogota’s city council, received shareholder approval last May to take on US$600m of debt to expand.
In September Bogota’s…
Moody’s has assigned a Ba1 rating to a planned US$300m issue by Colombian telco ETB to finance capex.
ETB, majority-owned by Bogota’s city council, received shareholder approval last May to take on US$600m of debt to expand.
In September Bogota’s mayor was quoted as saying some of the proceeds of the debt would be used to extend ETB’s fibre-optic network with the ambition to connect every home in the capital city.
In its credit assessment, Moody’s pointed at risks associated with the expansion of mobile and pay TV services, which carry lower operating margins than voice services, and where ETB will compete with larger and better capitalised operators.
However the ratings agency said that the city would be able to give a certain amount of support should ETB find its finances stressed.
ETB is 88.4%-owned by the district of Bogota with the remainder of the company floating on the Bolsa de Valores de Colombia, the country’s principal stock exchange.
