BUENOS AIRES — No. 1 Argentine MSO Cablevision faces a likely downgrade of its credit rating by Standard & Poor’s, as the local cable industry continues to suffer from recession.
The credit-rating agency has already put rival Multicanal on a negative watch, which could see an eventual downgrade.
The recession has affected both MSOs — neither of which is reporting a profit — although the impact on them is different.
Both will face higher borrowing costs if their credit ratings are lowered. But the big question is how the two are shaping up for massive new investments needed if they are to enter the broadband era.