The announcement of the North American funds and the British Providence to maintain the strategy and management team of MásMóvil after the takeover bid is a positive element for the Moody´s financial rating agency, which has decided keep the rating of the operator in stable B1 –speculative degree– after knowing the terms of the offer.
But, although it highlights that the funds will maintain the strategy, the business plan and the management team, the agency ensures that it does not clear «A series of unknowns», including the percentage of capital that the consortium may insure in the offer, the future capital structure of the company after the change of control, as well as the financial policies that the new owners will implement.
The rating agency made its first MásMóvil appraisal 13 months ago and awarded it that B1 rating with a stable outlook.
This Sunday, May 31, 2020, he published a report in which he maintained the same note and the same perspective, in which he included both strengths in the expansion plan of MásMóvil in recent years and weaknesses or challenges, including negative cash flow for 2020, the difficulties to continue gaining share and having assumed past acquisitions and investments with debt.
The report was released on Monday morning, coinciding with the takeover bid, so on Monday night it made an added comment, released this Tuesday, indicating that the announcement neither does it imply changes in its rating, in addition to pointing out that these unknowns remain.
Moody’s has indicated that it will continue to monitor the company’s announcements and will make further comments when more details about the takeover are unveiled, in order to assess to what extent the strong rating positioning can fully absorb the likely increase in leverage resulting from the leveraged buyout.
In the previous report, Moody’s warned that the rating for MásMóvil could drop in the future if operating performance deteriorated, if it financed new large mergers or acquisitions with debt or if liquidity fell significantly.