S&P takes UPC off watch

S&P said it removed UPC Holding BV’s ratings from CreditWatch after Liberty Global plc terminated its discussions regarding the combination of UPC Switzerland with Sunrise Communications. “We no longer see upside for our ratings on UPC Holding BV,” said the agency in a press release.

S&P affirmed UPC’s BB- rating, its BB senior secured debt rating and B rating on unsecured debt.

“In our view, although UPC will continue to play a strategic role while it is owned by Liberty Global, it is no longer a core group entity. By contrast, we see sister company Virgin Media, for example, as core to the group's long-term strategy and as highly unlikely to be sold. That said, the group will continue to run and support UPC and therefore we still view UPC as a strategically important subsidiary. As a result, we assume that Liberty Global will support UPC in reducing its debt, as it did in 2019 after the sale of assets to Vodafone,” the agency said.

The outlook is stable.

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