S&P upgrades Technicolor

Standard & Poor's said it raised the long-term corporate credit rating and senior debt rating on Technicolor SA to B from B-.

The agency also affirmed the short-term corporate credit rating at B.

The outlook is stable.

S&P also revised the recovery rating on Technicolor's credit facilities and notes to 3 from 4, reflecting 50% to 70% expected recovery in a default.

The upgrade follows Technicolor's prepayment of about €164 million of its debt - about 11% of total - in the third quarter of 2012, using cash proceeds from recently completed capital increases and disposal of its broadcast business, the agency said.

The upgrade also reflects base-case scenario expectations of sound operating performance in 2012 and 2013, sustained positive free operating cash flow and the maintenance of adequate liquidity, S&P said.

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