S&P: UPC loans BB, notes B

S&P said it assigned its BB issue ratings to the new $1.975 billion secured term loan AR borrowed by UPC Financing Partnership and to the €500 million secured term loan AS borrowed by UPC Broadband Holding BV. The recovery rating is 2, indicating an expectation of substantial (70%-90%; rounded estimate: 70%) recovery.

The agency also assigned a B issue rating to the new $550 million senior notes issued by UPC Holding BV. The recovery rating is 6, reflecting an estimate of 0% recovery.

S&P affirmed the B ratings on the existing senior notes and affirmed the BB issue ratings on UPCB Finance IV's and UPCB Finance VII's existing secured notes. The recovery rating remains at 2 (rounded estimate of recovery: 70%).

The agency said it notes that the recovery prospects for senior secured lenders are now very sensitive to further changes in the capital structure, and the recovery and issue ratings on the group's senior secured debt could be negatively affected.

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