S&P Global Ratings on Wednesday downgraded Cell C's debt to “default” after the embattled mobile network operator failed to make interest payments in July.
Cell C and its senior secured bonds are now rated at default . The company, which has struggled to make consistent profits since it became SA’s third mobile operator in 2001, is grappling with a hefty debt burden. Cell C said the suspension of interest payments in July is part of a wider initiative by the operator to improve liquidity and to restructure its balance sheet.
In June, S&P downgraded Cell C’s debt for the second time in less than three months to reflect that a default was “a virtual certainty”.A consortium of investors led by billionaire businessperson Jonathan Beare has agreed to take a minority stake in Cell CCell C CEO Douglas Craigie Stevenson said in a statement: “We are committed to simplifying the business model, right-sizing and optimising the business.
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