S&P affirms DKT, puts TDC debt on watch

S&P said it affirmed its B+ long-term issuer credit ratings on DKT Holdings ApS, the ultimate parent of Danish telecommunications network operator TDC A/S, and its subsidiary DKT Finance ApS. S&P also affirmed its B+/B long- and short-term issuer credit ratings on TDC A/S.

The outlook on all entities is stable.

At the same time, S&P said it placed on CreditWatch with negative implications the BB- issue rating on TDC's €3.9 billion senior secured term loan.

S&P also placed on CreditWatch with positive implications the B+ issue rating on TDC's senior unsecured notes, amounting to about €1 billion. In addition, S&P affirmed the B- issue rating on DKT Finance's €1.4 billion notes.

Finally, S&P said it withdrew its BB issue rating on TDC's €750 million hybrid bond, since this instrument has been fully repaid.

“The affirmation points to our expectation that only a moderate amount of the proceeds from the sale of TDC's Norwegian business to Swedish incumbent telecom operator Telia Company AB – for NOK 21 billion (about €2.2 billion) in cash – is likely to be paid to shareholders, and that the majority will be used to repay debt or be reinvested in the company's network,” S&P said in a news release.

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