S&P Global on Thursday (22 August) published a report downgrading Cell C to D (Default), while its rating of Cell C\u2019s senior secured bonds are now rated at Default (D).<\/p>\n
In response to the downgrade, Cell C said the suspension of interest payments in July is part of its wider initiatives to improve liquidity and to restructure the company\u2019s balance sheet.<\/p>\n
\u201cCell C continues to work proactively with all stakeholders to improve its liquidity, debt profile and long-term competitiveness as part of its strategic roadmap,\u201d the company said.<\/p>\n
Cell C added that it has entered into a term sheet to expand the provisions of its roaming agreement with MTN, to better control its capital expenditure and operating costs.<\/p>\n
\u201cAn agreement will lay the groundwork for a broader national roaming agreement, supporting South Africa\u2019s policy goals of avoiding network duplication,\u201d Cell C said.<\/p>\n
\u201cThe network services provided will drive efficiencies in the delivery of services to its consumers by Cell C.\u201d<\/p>\n
The company added that its expanded roaming agreement together with the recapitalisation transaction will help it to achieve sustainability.<\/p>\n
\u201cWe are committed to simplifying the business model, right-sizing and optimising the business,\u201d Cell C CEO Douglas Craigie Stevenson said.<\/p>\n
\u201cWe have engaged with S&P throughout this process and believe we are on the right track with the transactions currently being finalised.\u201d<\/p>\n