Moody’s revises UPC to negative

Moody's Investors Service said it changed the outlook on UPC Holding BV as well as its rated subsidiaries to negative from stable.

At the same time, the agency affirmed the company's Ba3 corporate family rating and Ba3-PD probability of default rating. It also affirmed the B2 senior unsecured debt ratings as well as the Ba3 ratings on the senior secured debt issued by UPC's finance subsidiaries.

"The change in outlook on UPC's ratings to negative is driven by the weaker operating momentum of the business in Switzerland which has constrained the company's consolidated revenue and EBITDA growth in 2017. UPC is also expanding its network to improve growth prospects, although at this time, its elevated capex is constraining free cash flow generation. Consequently, Moody's adjusted credit metrics for the company are weaker than the parameters set for the Ba3 rating even after assuming the cash-funded acquisition of Multimedia Polska (MMP)," Gunjan Dixit, Moody's vice president, senior credit officer and lead analyst for UPC, said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.