S&P puts Emerging Markets on positive watch

S&P said it placed the B corporate credit rating on Emerging Markets Communications LLC on CreditWatch with positive implications.

The positive watch follows news that Global Eagle Entertainment Inc. will be acquiring Emerging Markets for $550 million in cash, stock and the assumption of debt, S&P said.

The transaction will be positive for Emerging Market's lenders given an expectation for lower debt leverage and potential cost synergies, the agency said.

The combined business will have a good product mix between connectivity and media services that will provide potential cross-selling opportunities, the agency said.

The transaction also should increase the company's scale and improve both customer and geographic diversification, S&P said.

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