S&P rates NDS B+, loan BB-

Standard & Poor's said it assigned a B+ long-term corporate credit rating to NDS Group Ltd., along with a BB- rating on the proposed $1.05 billion equivalent term loans A and B and $75 million revolving credit facility issued by subsidiary NDS Finance Ltd.

The outlook is positive.

The ratings primarily reflect the company's highly leveraged capital structure, narrow business focus, competitive environment and exposure to long-term piracy and technology risks, S&P said.

These weaknesses are partly offset by the company's solid market positions globally, large share of recurring revenues with a diversified base of leading pay-TV operators, high barriers to entry and positive free cash flow generation, the agency said.

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