S&P: NDS on positive watch

Standard & Poor's said it placed on CreditWatch with positive implications its BB- long-term corporate credit rating on NDS Group Ltd.

At the same time, the agency said it placed on CreditWatch with positive implications the BB issue ratings on the $1.05 billion equivalent term loans A and B and on the $75 million revolving credit facility issued by subsidiary NDS Finance Ltd.

The agency said the CreditWatch placement follows the announcement by Cisco Systems Inc. of its intention to acquire 100% of NDS for about $5 billion, including debt and retention-based incentives.

S&P said the CreditWatch status reflects the high likelihood that the agency could raise the long-term corporate credit rating on NDS by several notches, in line with the rating on Cisco at a maximum, if the deal is successful, and factors in NDS' enhanced credit profile, pro forma for the transaction, based on the integration of its operations into Cisco's Service Provider Video Technology Group division.

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