S&P Global Ratings has downgraded Cell C’s debt to “D”, or “default” – its lowest-possible “junk” rating – after the mobile operator “failed to make interest payments on certain bilateral loan facilities” due last month.
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Cell C’s largest shareholder, Blue Label Telecoms, will delay publication of its full-year financial results until late September to deal with various issues related to the mobile operator’s recapitalisation and restructuring.
Regulators, including Icasa and the Competition Commission, will have to be pragmatic and lenient about a looming expanded tie-up between Cell C and MTN South Africa if the former isn’t going to go to the wall.
Cell C has missed several payments to national roaming partner MTN South Africa, underscoring the dire financial straits in which the country’s third-largest mobile operator finds itself.
S&P Global Ratings has downgraded Cell C’s debt rating further after the troubled mobile operator amended a private “airtime facility” agreement that the agency described as being “tantamount to a selective default”.
In the podcast this week, Duncan McLeod and Regardt van der Berg unpack what has been a dramatic two weeks for JSE-listed technology services group EOH.
Cell C’s largest shareholder, the JSE-listed Blue Label Telecoms, said on Friday that The Buffet Consortium plans to buy a minority shareholding in Cell C that will bolster the mobile operator’s balance sheet.