Cell C Is Technically Insolvent, Says Analyst

A senior market analyst is challenging Cell C’s largest shareholder, Blue Label Telecoms, to provide financial evidence that SA’s third largest mobile operator is solvent, ITWeb reported. David Shapiro, deputy chairman of Sasfin Securities, says it’s disturbing that shareholders in the mobile operator have chosen silence instead of explaining the future of the company to the markets. SA’s third-largest mobile operator was yesterday downgraded by ratings agency S&P Global Ratings to “default” status, after Cell C failed to make interest payments in July. S&P announced: “The downgrade follows Cell C’s announcement on 19 August that it has failed to make approximately R194 million in interest payments due July 2019 on certain bilateral loan facilities totalling 40% of its total debt at 31 December 2018.” Read more