NASSAU, BAHAMAS – The Bahamas Telecommunications Company’s immediate parent Cable and Wireless Communication (CWC) has maintained its Ba3 corporate family rating with a stable outlook.
Ratings agency Moody’s Investor Services said the rating reflects CWC’s “effective business model, strong profitability and leading market positions throughout the Caribbean and Panama”.
It continued: “At the same time, the rating also takes into consideration the company’s large exposure to emerging economies, increased competitive pressures in some of its largest markets and its high leverage for the Ba3 rating category.”
Moody’s added: “The stable outlook on CWC’s rating reflects Moody’s expectations that the company’s revenue will grow modestly in the next 12-18 months, with its adjusted EBITDA margin (including Moody’s adjustments) maintained in the high thirties in percentage terms and its liquidity remaining at least adequate.
“The outlook also incorporates slightly positive free cash flow for the next 12-18 months and a gradual decline in adjusted debt/EBITDA.”
CWC is an integrated telecommunications provider offering mobile, broadband, video, fixed-line, business, IT and wholesale services in Panama, Jamaica, the Bahamas, Trinidad and Tobago, Barbados and other markets in the Caribbean.
In the 12 months to September 2019, the company generated revenue of USD2.4 billion. CWC is a subsidiary of Liberty Latin America Ltd., which was split off from Liberty Global plc (Ba3 stable) in December 2017 and is listed on the NASDAQ.