S&P rates Telenet subsidiaries B+, new loan B+

S&P said it affirmed the B+ long-term corporate credit rating on Telenet Group Holding NV.

The agency also said it assigned a B+ long-term corporate credit rating to Telenet's fully owned finance subsidiaries, Telenet International Finance Sarl and Telenet Financing USD LLC.

The outlook is stable.

S&P also said it assigned a B+ rating to Telenet's proposed $850 million new senior secured term loan. The loan will issued by Telenet Financing USD.

The agency also affirmed the B+ ratings on Telenet Group’s senior secured debt.

The recovery rating on all of Telenet's senior secured loans is 3, indicating 50% to 70% expected default recovery.

The ratings reflect an expectation that the proposed issuance will be broadly leverage neutral for Telenet and that Telenet has performed in line with base-case assumptions, the agency said.

Telenet is seeking to issue an eight-year $850 million term loan to early refinance its outstanding €300 million senior secured fixed-rate notes and €400 million senior secured floating-rate notes, both due 2021, S&P explained.

The ratings reflect the company’s satisfactory business risk profile, supported by its strong market position, the agency said.

The ratings also consider Telenet's strong network capabilities and scalable infrastructure, S&P added.

These strengths are partly offset by an expectation of continued competitive pressure in the TV segment and ongoing competition for broadband and telephony services from other fixed-line and mobile operators, the agency said.

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