S&P upgrades Cyfrowy Polsat, Metelem

Standard & Poor’s said it raised its long-term corporate credit ratings on Cyfrowy Polsat SA and its core subsidiary, wireless telecommunications company Metelem Holding Co. Ltd., to BB+ from BB.

The outlook is stable.

At the same time, S&P raised the issue ratings on Cyfrowy’s Polish zloty 2.5 billion term loan and PLN 500 million senior secured revolving credit facility to BB+ from BB and withdrew them at the issuer's request, because Cyfrowy will refinance this debt on Sept. 28.

S&P also raised the issue rating on the €542.5 million and US$500 million high-yield bonds issued by Eileme 2 AB, Metelem's financing vehicle, to BB- from B+ previously.

S&P said it upgraded Cyfrowy because the group signed documentation to refinance its existing debt with a new secured PLN 11.5 billion senior facility agreement and a secured PLN 1 billion revolver.

“We expect that after the refinancing, which will be gradually executed and finalized by January 2016, Cyfrowy’s capital structure will significantly improve,” S&P said in a news release.

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