Ratings upgrade for Cell C
Restructuring at Cell C, which would see the company's debt reduced by more than 50%, to less than R8 billion, may also result in the provider receiving a ratings upgrade from Standard & Poor’s.
According to reports, the ratings agency has placed its "B-" long-term rating on Cell C on "CreditWatch with positive implications", simultaneously placing its "B-" issue rating on the company's senior secured debt on "CreditWatch positive".
Standard & Poor's has said that should debt be reduced to the lower project levels, this may lead to the adjusted debt to Ebitda ratio improving to less than four times.
Furthermore, under the restructuring, all debt will be converted into rand - currently, some 90% is in US dollars and euros.
The agency has said it plans to resolve the CreditWatch placement in the next six months.