Fitch ups Telenet

Fitch Ratings said it upgraded Telenet Communications NV's ratings and removed them from Rating Watch positive.

A stable outlook has been assigned.

Affected ratings include Telenet's issuer rating upgraded to B+ from B, Telenet Bidco NV's senior secured debt upgraded to BB from BB- Telenet Communications NV 9% senior notes due 2013 upgraded to BB from B- and Telenet Group Holding NV's 11.5% senior discount notes due 2014 upgraded to B+ from CCC+.

"Telenet's rating had previously been constrained by a number of factors, including the group's high financial leverage. With the debt redemption and reduction in cash interest payments going forward, Telenet has a financial profile that justifies a B+ issuer rating," said Michelle De Angelis, director in Fitch's leveraged finance group.

"In Fitch's view, further growth opportunities for Telenet's iDTV product, as well as cross-selling of products to increase revenue generating units per customer, are counterbalanced at this time by a potential for increased price competition in the Belgian internet and telephony markets and ongoing investment in digital TV and other technologies, which is reflected in the stable outlook."

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