Fitch upgrades Telenet

Fitch Ratings said it upgraded Telenet NV's long-term issuer default rating to BB- from B+.

The agency has affirmed the group's senior secured rating at BB with a recovery rating of RR2.

The outlook is stable.

The upgrade reflects a revised view of Telenet’s ability to generate free cash flow and support a leveraged balance sheet, Fitch said.

Telenet has a strong operating profile that is supported by a favorable market structure, which enables robust and stable cash generation, the agency said.

While pending cable wholesale regulation in Belgium is a risk to the company’s credit profile, Fitch said it now believes the company has sufficient margin in its pre-dividend free cash flow to weather the impact and maintain a net debt-to-EBITDA ratio of 4.3x.

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