S&P upgrades Telenet

S&P said it raised the long-term corporate credit rating on Telenet Group Holding NV to BB- from B+.

The agency also said it raised the long-term corporate credit rating on Telenet International Finance Sarl and Telenet Financing USD LLC to BB- from B+.

The outlook on all three companies is stable.

The agency also said it raised the ratings on Telenet's senior secured notes and term loans, and on the €120 million senior secured revolving credit facility, to BB- from B+.

The recovery rating on this debt remains at 3, indicating 60% expected default recovery.

The upgrades reflect an expectation that good operating trends in Telenet's cable operations will support EBITDA growth and free operating cash flow, S&P said.

The successful integration of recently acquired BASE and the realization of synergies from this acquisition will all support credit metrics, the agency said.

The ratings also consider the company's strong market position as the leading provider of broadband Internet and cable TV services in its service area, S&P said.

These strengths are partly offset by an expectation of continued competitive pressure in the TV segment and ongoing competition for broadband and telephony services from other fixed-line and mobile operators, the agency said.

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