S&P changes eircom view to stable

Standard & Poor's said it revised its outlook on eircom Holdings (Ireland) Ltd. to stable from negative.

At the same time, the agency affirmed its B long-term corporate credit rating on eircom, as well as the B issue rating and 3 recovery rating on the company's senior secured debt (comprising the term loan B and senior secured notes).

S&P said the outlook revision reflects the improvements that it expects in eircom's free operating cash flow (FOCF) and EBITDA margin.

Although the agency anticipates negative FOCF for the year ending June 2014, S&P expects it to become positive by June 2015, thanks to the effects of eircom's recent investments (including a countrywide fiber broadband roll-out and the launch of 4G and Internet Protocol television [IPTV] services) and cost-cutting program.

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