• JV parent upgraded on view that Orange will remain committed to the JV; looks to have been largely priced in given the muted response.
  • Initial leverage high at 5.5x; expected to decrease to 5.2x by end of 2024, targeting <3.5x medium term.
  • Capex as sales percentage to drop to ~15% next two years from 21% in 2021, boosting FOCF to debt to 8%-10% (seen near 5% within a year).
  • Time series shows performance of the Lorcat Secured 29s against peer HY Secured Communications Bonds (from VMED, ADRBID, BANIJA, TMOBPNL, UPCB, EURCOM)

COMMUNICATIONS: Lorca Telecom Bidco (MasMovil) Upgraded To BB[S] By S&P On Orange Spain Merger

Last updated at:Mar-28 07:59By: Niall Madigan


  • JV parent upgraded on view that Orange will remain committed to the JV; looks to have been largely priced in given the muted response.
  • Initial leverage high at 5.5x; expected to decrease to 5.2x by end of 2024, targeting <3.5x medium term.
  • Capex as sales percentage to drop to ~15% next two years from 21% in 2021, boosting FOCF to debt to 8%-10% (seen near 5% within a year).
  • Time series shows performance of the Lorcat Secured 29s against peer HY Secured Communications Bonds (from VMED, ADRBID, BANIJA, TMOBPNL, UPCB, EURCOM)

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