S&P revises Naspers outlook to positive

S&P said it revised its outlook for Naspers Ltd. to positive from stable.

The company is expanding its portfolio of internet and e-commerce companies and is considering listing around 27% of its non-South African investments on the Amsterdam Stock Exchange, S&P said.

S&P noted that Naspers’ very low loan-to-value ratio, material dividends received from investee companies, interest receipts on cash balances and moderate holding company costs add up to a moderate credit risk.

“The positive outlook reflects our view that, over the coming 24 months, Naspers will be able to pursue an acquisitive strategy, even if debt financed, to reinforce its current market positions, while retaining comfortable LTV and cash flow ratios,” S&P said in a press release.

The agency affirmed its BBB-/A3 rating on Naspers and its senior unsecured debt.

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