S&P: Telewest on watch

Standard & Poor's said it placed its BB- long-term corporate credit rating on Telewest Communications Networks Ltd. on CreditWatch with negative implications, following the announcement that NTL Inc. (B+/positive) is to acquire Telewest Global, Inc.

The acquisition principally reflects S&P's opinion that the financial risk profile of the combined NTL/Telewest group will be weaker than that of Telewest alone.

The business benefits of the combination are not sufficient to result, at least immediately, in a rating higher than that on NTL, a company roughly twice the size of Telewest, the agency said.

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