Moody's rates Cable & Wireless Ba2

Moody's Investors Service said it assigned Ba2 corporate family and probability of default ratings to Cable & Wireless Communications plc and has withdrawn the Ba2 corporate family and probability of default ratings from Cable & Wireless plc.

The outlook is stable.

The ratings acknowledge the successful establishment of Cable & Wireless Communications in March following the demerger of Cable & Wireless Worldwide plc from Cable &Wireless, which is now a subsidiary of Cable & Wireless Communications.

The ratings are supported by the company's improved business risk profile following the demerger, Moody's said, along with its good operating performance, product and geographic diversification and strong liquidity profile.

The ratings remain constrained by company's aggressive dividend policy that significantly reduces its free cash flow, the agency said.

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