S&P puts Vantage Towers on watch

S&P said it placed Vantage Towers’ BBB- issuer and issue ratings on CreditWatch with negative implications.

The negative watch follows majority owner Vodafone plans to create a joint venture with a consortium led by Global Infrastructure Partners and KKR. The joint venture will mean that Vodafone will reduce its ownership in Vantage and deconsolidate it.

The agency said it forecasts Vantage's pro forma adjusted debt figure (including the JV debt issuance) for financial year ending March 31, 2023 (FY2023) to increase to about €6.1 billion, reflecting pro forma adjusted debt to EBITDA of about 6x and about 5.8x in FY2024, up from 4.7x in FY2022.

S&P said it aims to resolve the CreditWatch once the deal closes and expects to lower the ratings a notch.

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