Altice International - comment

Moody’s downgraded Altice International's senior secured debt to Caa2 from Caa1, and its unsecured debt to Ca from Caa3. Given where the bonds are trading, the rating downgrade is long overdue. It is driven by the upcoming maturities (albeit modest in FY25/26) and the difficulty that Drahi-related entities face in accessing the capital markets.  In addition to the high leverage, driven by the expectation of negative cash flow for FY25, Moody’s has reservations regarding Altice’s structure and the fact that it fully consolidates fast fibre but only owns 50.1%.