Oct 2023 Financial News

Telecommunications Services of Trinidad and Tobago Ltd. Upgraded To'BB-' From 'B+' On Improved Metrics; Outlook Stable

Oct 24, 2023

Rating Action Overview

• Telecommunications Services of Trinidad and Tobago Ltd.'s (TSTT's) EBITDA margin rose significantly, to above44% for the 12 months ended June 30, 2023, following substantial investments and restructuring efforts to improveits pricing and bundling of services, reduce administrative costs, and expand the fiber network coverage.
• TSTT maintains a sufficient liquidity position to cope with the upcoming investments for optic fiber deployment.Therefore, we do not expect additional debt requirements, and, thus, TSTT should keep leverage at about 3.5x overthe upcoming years. We revised our assessment of TSTT's financial risk profile to a stronger category accordingly,triggering an upgrade.
• As a result, on Oct. 23, 2023, S&P Global Ratings raised its global scale issuer credit and issue-level ratings on TSTT to 'BB-' from 'B+'.
• The stable outlook reflects our expectation that the company will maintain gross debt to EBITDA below 4x in thenext 12-18 months. We forecast the company's improved profitability and capex plans will allow it to generate freeoperating cash flow (FOCF).

Source:

S&P Global Market Intelligence

Monday 23rd, October