Fitch: “Arqiva outlook stable”
May 28, 2026
By Chris Forrester
UK radio and television distribution business Arqiva has been re-rated by Fitch Rating, which says that Arqiva’s recent ‘Whole Business Securitisation’ bonds issued by Arqiva Financing plc are rated at ‘BBB’ with a ‘stable outlook’.
Fitch says: “Arqiva’s ratings reflect projected gradual deleveraging, in line with its largely contracted revenue profile. Under the Fitch rating case (FRC), we project net debt/EBITDA for the notes will peak at 3.2x in the financial year ending June 2027 (FY27) and full repayment by FY34, before the expiry of the current digital terrestrial television (DTT) multiplex licence at end-December 2034 and the digital radio national multiplex licence at end-December 2035.”
“Arqiva’s revenue is underpinned by a monopoly in terrestrial television and radio broadcasting, and long-term RPI-linked contracts in both its broadcasting and utilities businesses. However, technology risk and changes in TV content consumption could affect contract renewals. The senior debt is fully amortising by cash sweep or following a fixed schedule, and benefits from a comprehensive WBS security and covenant package, and a GBP150 million liquidity facility, covering about 12 months of debt service,” continues Fitch.
Fitch states: “Revenues Underpinned by Long-Term Contracts: Arqiva is the sole provider of network access and managed transmission services in the UK (regulated by the UK Office of Communications; Ofcom). Arqiva also owns and operates television and the majority of radio transmission towers in the UK. Arqiva has long-term contracts with public service broadcasters to provide coverage to 98.5% of the UK population, as well as with commercial broadcasters. Revenue contracts with utility companies in the growing smart utilities business are also long-term RPI-linked, providing additional revenue visibility.”
“Due to its industry nature, Arqiva is not exposed to discretionary spending, and we do not view the sector as cyclical. Barriers to entry are high due to the stringent regulatory framework and the industry’s capital-intensive nature. Arqiva is exposed to potential changes in technology in the medium to long term, with the emergence of new means for content delivery, which may affect pricing, particularly in the DTT capacity and satellite and media divisions,” explains Fitch, adding that Arqiva’s position is that of a monopoly.
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