S&P alters Cable & Wireless view to negative

S&P said it revised the outlook for Cable & Wireless Communications Ltd. to stable from negative but affirmed the company’s B- rating and its subsidiaries issue ratings.

“The negative outlook reflects the downgrade potential in the next 12 months because weaker-than-expected operating and financial performance could jeopardize expected improvements in EBITDA margins and cash flows, delaying deleveraging,” the agency said in a press release.

“We now expect its EBITDA margin to drop slightly below 35%, its proportionate debt to EBITDA ratio to be above 4.5x, and funds from operations (FFO) to debt to be below 15% during 2020, compared with our previous expectations of around 37%, close to 4x, and 20%, respectively,” S&P said.

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