The local Moody’s Peru reduced Telefónica’s classifications after the recent request of this company to enter an ordinary bankruptcy procedure to restructure its financial obligations. Through this mechanism, the company may renegotiate its debts or face a liquidation under the supervision of the state agency.
And it is that the volatility of the heritage of the telecommunications company as a result of its accumulated losses are some of the reasons that explain this decision of Moody’s. In this way, its classification of the fourth and sixth corporate bond program went from A.pe to CCC.pe, a lower credit quality compared to the previous one.
In addition, its category of common actions to 4.pe was adjusted, which reflects a poor combination of cash flow and liquidity in the market. Similarly, both your Ebitda As the operating cash flow (FCO) shows negative figures, which has hindered the fulfillment of the debt service.
“Moody’s Local Peru considers that TDP faces a high risk of non -compliance with its obligations in the terms and conditions originally agreed in 2025, given the uncertainty regarding the mechanisms to face the next financial and liabilities in general,” they said in their release.
In relation to the request for the ordinary bankruptcy procedure submitted by Telefónica del PerúMoody’s Peru believes that the company does not have the necessary capacity to continue facing the deterioration of its results and that it is facing a high risk of restructuring its obligations, which establishes a negative perspective.
Telefónica could not comply with payments
As explained by the risk classifier, there is uncertainty about future loans and capitalizations because the company is not a strategic asset for Telefónica SA, that is, the parent company of the Spanish group, despite the credits granted by Telefónica Hispanoamérica to face its Current operational expenses, reduce losses and face tax contingencies.
“As of December 31, 2024, TDP registered 7.05% income below the closing of 2023, in line with the lowest demand for fixed and mobile services, as well as for the process of technological change from HFC to fiber optics implemented by The company, which counteracted with a lower fixed cost structure allowed to register a gross utility of S/4,997.2 million, 8.17% lower than that registered as of December 2023, not being sufficient to cover administrative expenses. ” .
The aforementioned situation resulted in an operational loss of S/2,411.5 million. To this are added the financial expenses of S/630.4 million and a decrease in financial revenues, which led to a net loss of S/3,391.6 million, compared to a loss of S/613.5 million to December 2023. Consequently, the profitability indicators, evaluated by means of the ROAA and the Roae, continue in negative figures, evidencing a deterioration greater than the anticipated in the previous evaluation.
Finally, the agency Moody’s Local Peru He indicated that the reduction of the margins and flows of Telefónica They are insufficient to cover their operational and financial expenses, resulting in greater net losses (s/3,391.6 million), which could continue during exercise.
Source: Larepublica
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