TDC is the leading operator in the Danish fixed-line, cable, and mobile telecoms markets. TCD's material noncore assets, if disposed of, could generate significant proceeds to be applied primarily to repay debt. TDC generates healthy positive free cash flow, albeit that this is constrained by high interest expenses and higher expected taxes from the proposed change in Danish tax law. Favorable terms, conditions, and covenants in the senior secured facilities restrict debt incurrence, acquisitions, and dividend payments. TDC is very highly leveraged, with pro forma adjusted total debt to EBITDA of 6.8x (5.7x excluding preferred equity certificates). TDC faces potential new tax payments and a tight debt-amortization schedule in the medium term. The Danish telecoms market is one of the...
Companies mentioned in this report are:
- TDC A/S
- NTC S.A.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis