S&P rates Completel notes B-

Standard & Poor's said it assigned its B- long-term corporate credit rating to Completel SAS. The outlook is stable.

At the same time, the proposed €80 million senior secured notes issue maturing in 2012 were rated B- and assigned a recovery rating of 4.

S&P said the ratings on Completel primarily reflect the group's position as a challenger to more established and larger competitors in markets enduring weak demand and pricing pressure, as well as major operational challenges facing the group amid plans to expand its network by unbundling digital subscriber lines (DSLs) to about 80 metropolitan networks from nine currently.

S&P nevertheless said it expects the group to benefit from sufficient liquidity to implement its strategy after its simultaneous €80 million notes issue and €40 million equity offering. Completel also enjoys a significantly more conservative capitalization structure than its peers.

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