S&P ups Central European Media floaters, rates notes BB

Standard & Poor's said it assigned a BB debt rating to the $475 million senior secured convertible notes due 2013 issued by Central European Media Enterprises Ltd. The long-term corporate credit rating was affirmed at BB.

The outlook is stable.

S&P also raised the debt rating to BB from BB- on €245 million and €150 million of floating-rate notes due 2012 and 2014, respectively.

With an adjusted debt-to-EBITDA ratio at about 2.3 times at the end of December, S&P said ratings remain constrained by the group's acquisition-led financial policy and by its high concentration of profitability in a single television channel in the Czech Republic and in its Romanian TV channels.

Ratings also are constrained by the group's cyclical nature of advertising markets and potential for regulatory and political interference, the agency said.

These factors are mitigated by leading positions in four of the company's six Eastern European countries, good short-term revenue visibility and a position as producer of established, locally produced content, S&P said.

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