Outlook: Stable
Action date: 08/15/2022
Rating action: Affirmed


Ethifinance Ratings affirms the rating of BB- with a Stable outlook to Avatel Telecom, S.A. On February 15th, 2022, EthiFinance Ratings has revised the methodology applied to the credit ratings of corporate issuers, requiring by regulation the approval of the updated rating by our Rating Committee within a maximum period of 6 months. Thus, the credit rating has been revised on the same basis of information and rationale as our previous rating report dated on 26/01/2022, resulting in no changes to the rating. Avatel Telecom (and its subsidiaries) is the fifth fiber optic operator nationwide, specialized in bringing broadband coverage to small and medium-sized areas through the deployment of its own fiber optic (FTTH or Fiber to the home). The company, which operates solely in Spain, also offers pay television services, Wimax, and has recently become a full virtual operator for Telefónica. At the end of the 2020 financial year, the company presented a turnover of € 78.0M with an EBITDA* of € 23.6M, registering a NFD/EBITDA* ratio of 8.2x and NFD/EBITDA Proforma** of 4.1x. (*) EBITDA adjusted by Avatel after elimination of acquisition expenses. (**) Proforma EBITDA: includes 12 months of activity of the companies acquired during the 2020 financial year.


Date last rating: 08/15/2022
Date first rating: 01/26/2022