S&P affirms Telenet

Standard & Poor's said it affirmed its B+ long-term corporate credit ratings on Telenet Communications NV and related entity Telenet Group Holdings NV. Also affirmed were Telenet's B- senior unsecured debt rating and Telenet Group's CCC+ subordinated debt rating.

Both ratings were removed from CreditWatch, where they were placed with positive implications on Sept. 23 following shareholder approval of Telenet's share offering.

The outlook is stable.

The affirmation of the ratings, despite Telenet's strong results and reduced leverage after its share offering, reflects constraints on the ratings as a result of the risk that Liberty Global Inc. could increase its control over Telenet, the agency said. S&P described Liberty as having a more aggressive financial strategy and a weaker business risk profile than Telenet.

The ratings on Telenet reflect its position as a still-highly leveraged operator of analog and digital cable TV, businesses that generate positive cash flows but are increasingly exposed to the rapid emergence of new competitors and technologies such as DSL TV.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.