S&P boosts RBS

Standard & Poor's said it raised its long-term corporate credit rating on RBS Participações SA to BB- from B+.

The outlook is stable.

The agency said that the ratings were removed from CreditWatch with positive implications where they had been placed April 19.

S&P noted that the upgrade reflects RBS' improved financial profile as it has been using strong cash flows and the sale of its nonvoting shares in Net Serviços de Comunicação SA (BB-/positive) to repay short-term maturities and strengthen its liquidity position.

The agency said that the ratings reflect the group's operations in the cyclical media industry, dependence of revenues on a volatile advertising budget and our expectation of a more significant capital expenditure and more robust dividend distribution during the next few years, which could be accompanied by some increase in total debt levels.

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