S&P: Virgin Media notes BB-

Standard & Poor's said it assigned a BB- rating to the proposed $1.25 billion equivalent new senior unsecured notes due 2022 to be issued by Virgin Media Finance plc, a financing subsidiary of Virgin Media Inc.

The agency said it assigned a recovery rating of 5 to the proposed notes, indicating 10% to 30% expected recovery in a default.

The proceeds will be used to refinance its existing senior unsecured notes due in 2016 and partially refinance its senior unsecured notes outstanding in 2019, as well as any premiums associated with the tender offer launched Oct. 10, S&P said.

The recovery ratings on the proposed senior unsecured notes reflect the unsecured nature of the instruments, which have significant senior secured debt ranking ahead, the agency said.

The senior unsecured notes benefit from subordinated guarantees from the group's operating subsidiaries and rank senior to the convertible notes outstanding, S&P said.

However, the agency said it sees the recovery prospects for unsecured lenders as being potentially volatile to small changes in valuation assumptions.

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