S&P gives Voyage Digital (NZ), loan B+

S&P said it gave B+ ratings to Voyage Digital (NZ) Ltd. and its senior secured term loan. The outlook is stable.

“We expect Voyage Digital (NZ) Ltd. will maintain its market position as the third-largest integrated telecommunications company in New Zealand over the next few years. This is following its acquisition of Two Degrees Group Ltd. (2degrees), and subsequent merger with Orcon Holdings Ltd.,” the agency said in a press release.

“Voyage Digital's earnings will be diversified across mobile, fixed-line, and energy services. 2degrees is a mobile-focused telecommunications business while Orcon is focused on fixed-line services. Excluding mobile equipment sales, we project fixed-line services will contribute 45%-50% to Voyage Digital's revenue. Mobile will contribute 40%-45%, and energy about 10%,” S&P said.

The outlook reflects the forecast that Voyage Digital will integrate the 2degrees and Orcon businesses while maintaining a debt-to-EBITDA ratio below 5x, S&P said.

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