Fitch Affirms UAB Bite Lietuva at 'B-'; Withdraws Ratings
OREANDA-NEWS. Fitch Ratings has affirmed UAB Bite Lietuva's (Bite) Long-term Issuer Default Rating (IDR) at 'B-' with a Stable Outlook. Fitch has simultaneously withdrawn all of Bite's ratings. A full list of rating actions is available below.
Fitch has withdrawn the rating as Bite has chosen to stop participating in the rating process for commercial reasons. The company repaid its senior secured floating-rate notes due 2018 and senior secured revolving credit facility after its acquisition by Providence Equity Partners and has no public debt under its new capital structure. Fitch will no longer provide ratings or analytical coverage for Bite.
KEY RATING DRIVERS
New Shareholder
Bite was acquired by Providence Equity Partners in February 2016. Following the acquisition Bite repaid the outstanding senior secured floating-rate notes and the drawn part of RCF as per instruments' documentation requirements. Fitch estimates that the company's pro-forma leverage with the new capital structure would be slightly higher than the net debt/EBITDA of 3.5x reported at end-3Q15.
Strong Operating and Financial Performance
Bite demonstrated strong operating and financial performance in both the Lithuanian and Latvian markets in the nine months to September 2015, driven by an improving macroeconomic backdrop, a stable pricing environment and the rollout of LTE networks. Growing penetration of smart devices and higher mobile data consumption are among the key contributors to the company's success. Competition in both markets remains rational as mobile operators continue to focus on profits from their existing subscribers rather than on acquisition of new customers.
RATING SENSITIVITIES
Not applicable
FULL LIST OF RATING ACTIONS
UAB Bite Lietuva
Long-term IDR: affirmed at 'B-', Outlook Stable; withdrawn
Bite Finance International BV
Senior secured RCF repaid: 'B'/'RR3' withdrawn
Senior secured bonds repaid: 'B-'/'RR4', withdrawn
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