Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
RATIONALE FOR NEGATIVE OUTLOOK
The negative outlook reflects the projected continued pressure on BT's top line over the next 18 to 24 months which should translate into a marginally declining to flat EBITDA and adjusted leverage remaining at above 3.5x. The outlook could be stabilized if (1) BT's EBITDA improves driven by improved top line trend and cost savings, (2) leverage decreases to below 3.5x, and (3) a potential acceleration of fibre rollout does not put additional pressure on free cash flow and leverage.
WHAT COULD CHANGE THE RATING UP/DOWN
Upward pressure on the rating could arise if underlying operating performance and cash flow generation substantially improves with growing revenues and stronger key performance indicators (KPI) trends leading to a sustainable EBITDA growth trajectory, coupled with greater visibility in capital spending. Credit metrics that would support a rating upgrade include RCF/adjusted net debt sustainably above 22% and adjusted debt/EBITDA not exceeding 2.8x on a sustained basis.
Downward pressure on the rating could arise if operating performance remains weaker than expected, or the risks arising from the pension deficit significantly increases as a result of a widening in the deficit or actions that could be detrimental for bondholders, e.g. material subordination risks. Credit metrics that would support a rating downgrade include RCF/adjusted net debt sustainably falling below 18% and adjusted debt/EBITDA remaining above 3.5x on a sustained basis.
Toff what rubbish.
This has nothing to do with MM's and DB. Market Makers can effect share prices for the short term but to suggest that a nine year consistent downtrend is down to down to MM's and DB is ludicrous.
I can't say that I know the reason but one thing I do know is that BT's debt is significantly higher then its capitalisation. Its debt rating is also falling. That on its own should start ringing alarm bells. Although Vodafone also has worrying huge debts at least its capitalisation is 25 billion above its debt.
BluePete,
"It’ll never go as low as you are"
Such uncalled for and abusive comments would seem to suggest that you are holding me responsible.
As a rule I never go on the offensive or defensive. I just point out the facts as I see it I guess when ever I see a new low like today when it reached 154.92 you see a higher yield. I am sure that once its dividend yield reaches 10% you will all be celebrating.
Yes you are right that I should be big enough to ignore your abuse. Its only when you get personal and abusive that I come somewhat defensive.
Illbeta buck,
I bet the long suffering holders of BT are now praying that the day should already be over. There is no group of investors who look forward to Bank holidays as BT shareholders.
Toff,
Lamtree and myself are two infantiles .
We are therefore coming to ask your sage intelligent advice of where to invest.
We are already invested in BT, Centrica and Vodafone.
Where else would you suggest we invest???.
Huge debt = infantile nonsense
Huge pension deficit = infantile nonsense
revenue down = infantile nonsense
consistently falling over every time span = infantile nonsense
expected dividend cut = infantile nonsense
MARKET MAKERS MANIPULATION = Mature intelligence
Deutsche Bank, Corbyn, Brexit, etc etc = Mature intelligence
Toff, I am starting to wonder - maybe your Aunty does have balls?
Royal mail,
Royal mail is a relic from the past.
Britain would be a better place without Royal Mail. It belongs in the era of the 3 day week a throwback to the Arthur Scargill period. We got rid of Corbyn lets do the same to Royal Mail.
Fleccy,
"Buffett says if you don't feel comfortable owning a stock for 10 years, you shouldn't own it for 10 minutes."
I completely take your point and that's why I don't like BT as I have been uncomfortable holding them for 5 Years. Somehow I very much doubt if Buffet would ever hold a share the likes of BT.
Fleccy,
What period do you consider long term. The financial community consider long term 3 years and above. I am just mentioning it as BT have been declining consistently for 5 years. I do not think anyone can make accurate assumptions about the future. Yes you are right that there is a limit how low BT can go. However is there no possibility that a predator will take advantage and make a bid and get it for a pittance. Bt's debt is way higher then its capitalisation. They are very shortly going to have to raise funds for 5g and other developments would it be totally unreasonable for potential funders to demand a greater dividend cut or even worse for BT to make a right issue. Your point about hindsight is well made but there is something called foresight. It is always good to remember this common trading warning "Past performance is not a guide to future performance" Fleccy I think you take that warning much to literally.
Fleccy,
If you had realised your losses a year ago. Hopefully you would have reinvested the proceeds in other shares and they would have risen with the rest of the market. Keeping you money in BT not only increased your losses by 20% but did not allow that money to work for you.