Standard & Poor Continue To Rate Inter Milan Bond At “B”

Credit rating agency Standard & Poor have confirmed that they continue to rate Inter Milan’s debt bond at a B grade.

This according to Italian news outlet Calcio e Finanza. S&P note the number of commercial partnerships as a positive factor in terms of the Nerazzurri’s cash flow, but also consider the long-term cash flow to be less secure, hence why the rating has not improved.

Inter’s debt issues in recent years have not been any secret.

And the club have a bond which is currently at €415 million.

And global credit rating agency have graded that bond at B.

There had been a risk of that rating being lowered. The reason for this was the situation with last season’s main shirt sponsor DigitalBits.

The cryptocurrency company’s nonpayment of amounts that they owed in the partnership meant that the deal proved to be nothing less than a disaster for Inter on a financial level.

However, as S&P note, the outlook has looked more positive since then.

Standard & Poor Continue To Rate Inter Milan Bond At “B”

S&P note that Inter’s performances on the pitch last season helped with their commercial revenues off of it.

The reason for this is that the Nerazzurri reaching the Champions League enabled the club to agree a short-term main shirt sponsorship deal with US-based streaming service Paramount+ at the tail end of last season.

Inter then extended that partnership for this season.

That deal is a short-term one, as is the deal with sleeve sponsor eBay.

But, S&P notes, there is a positive history of Inter successfully generating commercial revenues. The precedent is generally positive in terms of agreeing partnerships with significant revenues and exposures, and of being able to renew them, in spite of the DigitalBits debacle.

Therefore, S&P does not see there as risks in terms of cash flow being insufficient heading into the 2027 refinancing period of the club’s debt bond.

However, the agency anticipates, there are some longer-term cash flow doubts that could be problematic after refinancing.

Therefore, S&P have neither decided to upgrade nor downgrade the bond. It remains at B.