Liquid Telecommunications Limited Credit Report

07 June 2019

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Liquid Telecom (LT), the South African fibre network and data-centre operator, has been downgraded by Moody’s, primarily because of concerns over FX headwinds facing the group in Zimbabwe and South Africa. Liquidity has come under pressure following repatriation issues in Zimbabwe, and in January 2019, LT had to draw down its revolving credit facility (RCF) to make a USD 31m interest payment on its 2022s. However, the money is expected to be fully repaid following a USD 180m equity injection from CDC Group, as we discuss below.