S&P lifts RCS & RDS view to positive

S&P said it revised the outlook to positive from stable on RCS & RDS SA and its parent Cable Communications Systems NV.

The agency also said it affirmed the B+ long-term corporate credit ratings on both companies and on the existing notes.

S&P also said it assigned a B+ rating to the proposed senior secured notes to be issued by Cable Communications and guaranteed by RCS & RDS.

The outlook revision reflects an expectation of a materially reduced currency risk after the proposed refinancing, the agency said.

The positive outlook also considers an expectation that the company’s credit ratios will strengthen in line with its solid operating performance, S&P said.

Cable Communications plans to issue €375 million in senior secured notes and Romanian leu 1.43 billion in senior secured loans to refinance existing debt of €659 million, the agency explained.

As a result, the amount of debt will be unchanged, but S&P said it expects that euro-denominated debt will reduce to about 40% of total debt, compared with 65% currently.

Given that most revenues are generated in Romanian leu and Hungarian forint, the currency mismatch will partly remain, but be much lower, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.