Fitch Affirms Axian Telecom’s ‘B+’ Rating with Stable Outlook
Fitch affirms Axian Telecom's ‘B+’ rating with Stable Outlook, citing strong market positions and growth despite FX and capex challenges.
Fitch Ratings has affirmed Axian Telecom ‘s Long-Term Issuer Default Rating (IDR) at ‘B+’ with a Stable Outlook. A full list of rating actions is below.
Axian’s ratings are supported by leading or strong positions in countries of operation, strong market growth prospects, experienced management and moderate leverage. However, they are constrained by weak operating environments, with most earnings and cash flow from countries with sovereign ratings of ‘B+’ or lower and subject to material FX risks. FX risks are mitigated by geographic diversification and exposure to local currencies, with 30% of earnings generated in countries whose currencies are pegged to hard currencies.
The Stable Outlook reflects Fitch’s forecast that EBITDA leverage will remain low on continued EBITDA growth. We expect Fitch-defined cash flow from operations (CFO) less capex/total debt to be negative for another two years, but with the reduction in capex intensity, we expect this to start trending to break even.
– Excerpt from Fitch Rating’s Website
