Fitch puts UPC on positive watch

Fitch Ratings said it placed UPC Holding BV's long-term issuer default rating of BB-, senior secured notes rating of BB+ and senior notes rating of B on Rating Watch positive.

The positive watch follows news the sale of UPC's operations in Switzerland to Sunrise Communications AG, Fitch explained.

The agency said it understands the transaction will involve the transfer and integration of UPC and its subsidiaries into Sunrise and will be accompanied by the transfer of UPC's existing senior and senior secured notes to the enlarged group.

Fitch also understands that UPC's term loan will be repaid at or prior to the closing of the acquisition, therefore UPC's senior secured term loan ratings were not included in the positive watch.

The agency said there is a potential ratings upside for UPC's senior and senior secured notes given the stronger operating profile and more conservative financial leverage the enlarged group is expected to represent.

Fitch said it will resolve watch on closure of the deal, which is subject to Sunrise shareholder approval, success of Sunrise's rights issue and regulatory consents.

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