S&P rates Matterhorn Telecom notes B, CCC+

Standard & Poor’s said it assigned a B long-term corporate rating to Matterhorn Telecom Holding SA and subsidiary, Matterhorn Telecom SA.

The agency also said it assigned a B rating to Matterhorn’s senior secured debt with a recovery rating of 3, reflecting 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating to the senior notes with a recovery rating of 6, reflecting 0 to 10% expected default recovery.

The agency also said it discontinued all of the ratings on Matterhorn Financing & Cy SCA, Matterhorn Mobile Holdings SA, Matterhorn Midco & Cy SCA and Matterhorn Mobile SA following the effective transfer of Salt Mobile SA to Matterhorn Telecom Holding.

S&P said it understands Matterhorn Mobile will be liquidated before the end of 2015.

The outlook is stable.

Matterhorn Telecom Holding and Matterhorn Telecom were created to facilitate the group’s refinancing, the agency said.

The ratings continue to reflect Matterhorn’s fair business risk profile and highly leveraged financial risk profile, S&P said.

Matterhorn has a No. 3 position in a market dominated by the incumbent telecom operator, Swisscom AG, the agency said.

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