Moody’s changes UPC view to negative

Moody’s Investors Service said it changed the outlook for UPC Holding BV to negative from under review. The company’s ratings and outlook have been under review since March. Before the review, UPC’s outlook was negative.

Moody’s confirmed UPC’s Ba3 corporate family rating, the Ba3-PD probability of default rating as well as the Ba3 ratings on the senior secured debt issued by UPC’s finance subsidiaries and the B2 ratings on the senior unsecured debt raised by UPC.

“UPC’s Ba3 CFR and negative outlook reflects (1) the company’s high leverage projected by Moody’s at around 5.0x at the end of 2019 with no prospects for strong de-leveraging over the short-term, (2) the continued pressure on revenues and earnings resulting from the highly competitive nature of the Swiss telecom market, and (3) the moderate free cash flow generation constrained by a high level of capital expenditures including those funded through vendor financing facilities,” said Sebastien Cieniewski, Moody’s lead analyst for UPC, in a press release.

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