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Assessing The Recovery Effects Of Changes In The Capital Structure, Out Of Court Restructuring, And The Business Risk Profile Of EMEA Telecoms Operators Apr 10
Standard & Poors, April 2010
Abstract
Covenant amendments, debt restructurings, and refinancing can have a material effect on recovery prospects for speculative-grade (that is, those with long-term issuer credit ratings of 'BB+' and below) telecommunications operators in Europe, the Middle East, and Africa (EMEA). Loose documentary provisions and covenants, for example, can often mean that lenders might not be able to act on early signs of underperformance, depressing the stressed valuation and recovery. The higher the available liquidity, the higher the stress required to drive the company to default and, therefore, the lower the stressed valuation and recovery. Similarly, in terms of the capital structure, the higher the committed payment (in terms of debt amortization requirements), the earlier the hypothetical default and the lower the operating...
Companies mentioned in this report are: Virgin Media Holdings Inc.,UPC Holding B.V.,WIND Hellas Telecommunications 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: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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