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Wind's leverage is high at 5.2x net debt (including PIK debt)/EBITDA LTM-to-Q213 (Fitch defined). We estimate that leverage may marginally increase by end-2013 due to continuing EBITDA and cash flow pressures. The company is facing an increase in cash tax payments as 2013 will be the first year that it pays full income tax. This, coupled with high cash interest and high capex on the back of a LTE roll-out, will push its free cash flow (FCF) to, at best, marginally positive territory, limiting flexibility to deleverage.

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