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Moody’s Raises Helios Towers’ Credit Ratings
Moody’s has upgraded the corporate family rating (CFR) of Helios Towers plc to Ba3 from B1, reflecting a sustained strengthening of the company’s credit profile.
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In the same rating action, Moody’s also upgraded Helios Towers’ probability of default rating (PDR) to Ba3-PD from B1-PD and raised the rating on the company’s $850 million senior unsecured notes due in 2029, issued by HTA Group, Ltd., to Ba3 from B1.
Outlook Revised to Stable
Moody’s revised the outlook for both Helios Towers and HTA Group to stable from positive, citing the company’s continued solid operating performance, improving free cash flow generation and ongoing commitment to deleveraging.
The rating agency said Helios Towers’ credit metrics have strengthened in a sustainable manner, underpinned by disciplined financial management and resilient cash flows.
Shareholder Distributions Balanced by Lower Leverage Targets
Ratings analysts noted that the company’s decision in November 2025 to introduce shareholder distributions signals confidence in the sustainability of free cash flow over the medium term.
This move is supported by a revised net leverage target of 2.5x–3.5x, reduced from the previous range of 3.5x–4.5%, reinforcing the group’s improved credit profile.
Moody’s described the updated financial policy as prudent and governance-enhancing, prompting an upgrade of Helios Towers’ ESG governance issuer profile score to G-2 from G-3, and its Credit Impact Score (CIS) to CIS-2 from CIS-3.
Improving Debt Metrics and Cash Flow Generation
On a Moody’s-adjusted basis, Helios Towers reduced its debt-to-EBITDA ratio to 4.5x for the twelve months ended June 2025, down from 4.8x in December 2024. Over the same period, the company generated $46 million in adjusted free cash flow.
Moody’s expects leverage to decline further to around 4.2x by the end of 2025 and approximately 3.9x by the end of 2026, while maintaining positive free cash flow.
The agency said Helios Towers’ financial policy is likely to strike a balance between shareholder distributions, discretionary capital expenditure and continued deleveraging.
Strong Market Position Across Africa
The upgraded ratings are supported by Helios Towers’ leading position in seven high-growth African telecom tower markets, with additional operations in two other countries.
Moody’s highlighted the company’s long-term, annuity-like contracted revenues, backed by agreements with major mobile network operators. The average remaining contract life stands at 6.8 years, representing an estimated $5.3 billion in future revenue, with built-in price escalators for power costs, inflation and foreign exchange movements.
Risks from Operating Environments Remain
Despite the upgrade, Moody’s noted that Helios Towers’ ratings remain constrained by exposure to high-risk sovereign environments, particularly Tanzania and the Democratic Republic of the Congo, which together account for roughly 70% of EBITDA.
Stable Outlook Reflects Financial Discipline
The stable outlook reflects Moody’s expectation that Helios Towers will continue to adhere to its stated financial policies, sustain free cash flow generation and maintain solid credit metrics and adequate liquidity, even as it reduces expansionary capital expenditure and refocuses on organic growth through colocations.
