RATINGS AGENCY STANDARD & Poor’s (S&P) has warned the some debt holders in Eircom could by down 90% of their investment if the company defaults on its debts.
Eircom owes €3.6bn, but is not in default on any of its loans.
The ratings agency has run a ‘recovery analysis’ on the debt held by Eircom’s owners. S&P said that while Eircom has leading market positions and a “satisfactory” risk profile, a debt default is not out of the question.
The company has rejected suggestions of any default.
Secured debt could have recovery levels of up to 90% or 100%, but in the case of a default, the situation would be reversed, with those holding the debt down up to 90%.
S&P said:
The recovery rating on this debt is six, indicating our expectation of negligible recovery in the event of a payment default.
Periods of clouds and sunshine
Max: 19 °C
Min: 10 °C
Partly sunny
Max: 19 °C
Min: 10 °C
5,979
6
