Moody's: Telenet notes Ba3

Moody's Investors Service said it assigned a provisional Ba3 rating to the €100 million senior secured notes due 2016 to be issued by Telenet Group Holding NV's Telenet Finance Luxembourg II SA. The corporate family rating remains Ba3.

The outlook is stable.

The proceeds will finance a €100 million term loan facility to Telenet International Finance Sarl and will be used for general corporate purposes.

The agency said the ratings reflect Telenet's continued solid operational performance supported by the company's multi-play strategy.

However, the ratings also take into account the intensive competition that Telenet faces, its limited size of operations compared with global peers and the expectation that Telenet will continue to pay out all of its internally generated free cash flow in shareholder disbursements, Moody's said.

The agency noted that Telenet intends to increase its net senior leverage ratio to 3.5 times by the end of 2011. Its last 12 months net total debt-to-EBITDA ratio was 3.3 times as of Sept. 30.

© 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.