S&P: TDC view to negative

Standard & Poor's said it its outlook on TDC AS to negative from stable.

At the same time, the agency affirmed the BBB long-term and A-2 short-term corporate credit ratings on the company.

S&P said the outlook revision follows TDC's Sept. 15 announcement that it will acquire Norwegian cable operator Get AS, a provider of high-speed broadband, pay-tv and fixed telephony to 500,000 customers, Kr. 12.5 billion (about €1.67 billion). The transaction will likely close in 2014 and lead to deterioration in TDC's credit metrics.

The negative outlook reflects the possibility of a one-notch downgrade over the next 24 months if TDC's credit metrics do not strengthen currently expected. This could happen if operational performance was weaker than in S&P’s base case or if the company renewed any debt-financed merger and acquisition initiatives, the agency said.

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