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Official - Inter, Fitch assigns a B+ rating to the new 415m bond

Official – Inter, Fitch assigns a B+ rating to the new 415m bond

Fitch, a well-known rating agency, has assigned a “B+ (EXP)” rating to a new €415 million (maturity 2027) bond issued by Inter.

Through an official statement, the well-known rating agency Fitch has allocated New bonds amounting to 415 million euros (Maturity 2027) issued by Inter with a rating of “B + (EXP) with a stable outlook. Here is the company note:

The pandemic has reduced Inter’s revenue diversity and created a greater reliance on performance on the pitch and shareholder support over the coming periods to generate negative cash flow. The new bond will be Intermedia’s top-tier bond, fixed rate and only partially amortized with a maturity of 94% over five years, with significant refinancing risk.”

Fitch believes that the risk of refinancing is closely related to the performance of the consolidated group. Inter Media Cash Flow presents investors with a substantial claim on the promised revenue which guarantees payments to investors and the financing of reserve accounts, before any distributions are made to TeamCo.”

“Fitch analyzes the club on a consolidated basis and focuses on adjusted net debt/EBITDA as a primary metric. As part of our financial analysis, we have updated our assumptions to reflect the latest financial and field performance, participation in international competitions, stadium attendance expectations, player salaries and player transfers.”

As part of this update, we’ve also reversed management’s latest business plan and lost Asian sponsorship deals. This leads to less diversified income and greater reliance on performance on the court. In particular, there is now greater reliance on UCL qualification, which we do not consistently assume in the case of a Fitch rating.”

“Updated financial analysis generated lower cash flow and negative EBITDA in FY22, resulting in a significant increase in leverage. According to Fitch Ratings, Adjusted Net Debt/EBITDA was 21.0x in FY23 followed by 9.5x in year fiscal 24 and 5.6 times in fiscal year 25”.

(Source: Football and Finance)

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