S&P downgrades Cell C due to its precarious financial position
S&P Global Ratings has downgraded Cell C’s debt profile because of the mobile operator's deteriorating liquidity position and rising risks that it will not be able to refinance maturing debts. Zaf Mahomed, Cell C’s CFO said: "Cell C has noted ratings agency S&P’s ratings release and outlook of the company and acknowledges its evaluation." The ratings agency lowered Cell C’s issuer credit rating to CCC- from CCC+, placing it deeper in “junk” territory. The company's capital structure was “unsustainable”, it said. The network operator’s poor credit rating means it faces steep interest costs.
PODCAST | Consumers are fed up with Telcos..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.