2008-06-03 23:47:27 -
- Fitch Ratings has downgraded the following ratings for Transtel Intermedia S.A. (Transtel):
--Foreign currency Issuer Default Rating (IDR) downgraded to 'C' from 'CCC';
--Local currency IDR downgraded to 'C' from 'CCC';
--US$170 million senior notes due 2016 downgraded to 'C/RR4' from 'CCC+/RR3'.
All ratings are placed of Rating Watch Negative.
The rating action reflects
the partial payment of the coupon of the US$170 million notes due 2016 that was due in June 1, 2008 as well as the associated low liquidity and weaker than expected operating results. The Rating Watch will be resolved within 30 days depending on the company's ability to collect funds to pay the rest of the interest payment of approximately US$5.5 million. Transtel has 30 days for the payment of the interest due before it is considered and event of default. Fitch will reevaluate the ratings after the cure period if the company meets the interest payment within the 30 day grace period.
Transtel controls and operates seven telephone systems and one cable system serving residential and commercial subscribers in ten cities including Cali and its metropolitan area, the municipalities of Popayan and Jamundi. The company offers local telephone, data, Internet and to a lesser extent pay television services. As of March 31, 2008, Transtel had over 228,746 lines in service, 38,850 Internet subscribers including 21,408 broadband users and 12,600 pay television subscribers. Revenues and EBITDA for the latest 12 months (LTM) ended March 31 2008 amounted to approximately US$52 million and US$35 million respectively.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings
Sergio Rodriguez, CFA, +52 (81)8335-7179 (Monterrey)
Mauro Storino, +55 21 4503-2600 (Rio de Janeiro)
Christopher Kimble, +1-212-908-0226
(Media Relations, New York)
