S&P might lift Ymobile

Standard & Poor's said it placed its BB long-term corporate credit and debt ratings on Ymobile Corp. (formerly eAccess Ltd.) on CreditWatch with positive implications.

The CreditWatch placement follows the announcement by Softbank Corp. (BB+/stable/--), the parent company of Ymobile, that it will merge four domestic telecommunications subsidiaries within the group. Ymobile will be absorbed into Softbank Mobile Corp. (not rated), the surviving company, as of April 1, 2015, and dissolved.

The agency said it will resolve the CreditWatch status when there are clearer prospects of the merger progressing as planned, including the granting of approval from Japan's Ministry of Internal Affairs and Communications.

In that case, S&P expects to upgrade Ymobile and its associated bonds to BB+, the same level as the rating on Softbank, in line with its expectation of the credit quality of the surviving merger entity, Softbank Mobile.

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