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S&P has put Tim’s rating under observation for a possible increase, “following the recent announcement that Tim’s board of directors has approved Kkr’s offer for NetCo”. “We have therefore placed all of our ratings on TIM, including our ‘B+’ long-term credit rating, on CreditWatch with positive implications,” the ratings agency wrote.
After the sale of Netco «Tim will reduce the size and scope of its operations, which will weigh on our assessment of the company’s risk profile» observes S&P, but it will use a significant part of the proceeds to reduce financial leverage and thus «the structure of the capital that TIM will have following the transaction will probably compensate for the weaker assessment of the company’s risk profile”. S&P sees an increase of “up to two levels” in the rating as possible if the transaction closes in line with management’s expectations and forecasts in the summer of 2024.
Meanwhile, Tim’s CEO, Pietro Labriola, in a call with analysts in which the top manager, in addition to illustrating a third quarter characterized by growth both domestically and with Tim Brasil, provided assurances on the sale of the network to the American fund Kkr: «No obstacles» on the spin-off and sale of Netco. The signing of the agreement “took place last Monday”. And Labriola guarantees: «We see no deviations from the indicative timing, we see no obstacles to approvals. The closing is expected between the end of May and July.”
«KKR’s offering for the Network improved significantly by 3 billion in the process, despite worsening macroeconomic conditions». The CEO also underlined that the project is proceeding along two parallel lines, that of Netco and that of Sparkle, in whose negotiation a better valorisation “we are confident”.
2023-11-09 19:07:30
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