S&P upgrades Telewest

Standard & Poor's said it raised its long-term corporate credit ratings on Telewest Communications Networks Ltd. - the U.K.-based telephony, cable-TV, and internet provider - to CCC+ from SD and placed the ratings on CreditWatch with positive implications following the group's restructuring.

At the same time, S&P withdrew its ratings on related entities Telewest Communications plc and Telewest Finance (Jersey) Ltd., including its SD corporate credit rating on Telewest Communications plc. This is because these entities will not form part of the restructured group.

"The rating actions principally reflect the group's balance sheet and corporate restructuring, which involved a £3.8 billion debt (and interest) for equity swap," said S&P credit analyst Simon Redmond.

The ratings on Telewest Communications reflect the company's refinancing risk, material leverage, weak cash generation, and competitive operating environment. The ratings are supported, however, by the group's substantially complete network, customer base of about 1.75 million, and high average revenues per user.

© 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.