JOHANNESBURG – The financial woes facing embattled mobile operator Cell C mounted on Thursday after rating agency S&P Global Ratings lowered the company's rating to default.
The rating agency's move came after Cell C failed to make about R194 million in interest payments due last month.
S&P said it considered both the missed payments and suspension of future payments as a general default.
"It also reflects our expectation that the company will not make these payments within the 30-day grace period due to its decision to suspend future payments," S&P said in a statement.
"We believe there is an increased likelihood that Cell C will be unable to repay all or substantially all of the obligations as they come due unless it is able to restructure its debt and recapitalise its balance sheet."