- ID: 1753815
- May 2011
- Standard & Poors
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
Extensive local and regional network infrastructure, supporting wholesale revenues. Adequate liquidity, owing to long-dated debt maturities. Still fair broadband Internet subscriber market share of 11%. Intense competition for broadband and fixed-line telephony services and continued high subscriber losses Ongoing need for cost cutting to sustain operating margins. Relatively small operational scale and weak ability to generate meaningful free cash flow. High dependence of cost structure on regulations for local loop access and interconnection fees. Aggressive leverage. The long-term corporate credit rating on German facilities-based alternative telecommunications operator Versatel AG is constrained by Standard & Poor's Ratings Services' view of intense price competition for broadband and fixed-line telephony services, which in our opinion forces Versatel to continue its cost-cutting and restructuring...
Companies mentioned in this report are: Versatel AG