Moody’s changes UPC outlook to stable

Moody’s Investors Service said it revised its outlook for UPC Holding BV (Sunrise UPC) to stable from negative and affirmed the B1 instrument ratings on the senior secured bank credit facilities issued by UPC Financing Partnership and UPC Broadband Holding BV and the senior secured notes issued by UPC Broadband Finco BV and UPCB Finance VII Ltd. The agency has also affirmed the B3 instrument ratings on the senior unsecured notes.

“Today's rating action is prompted by Liberty Global plc's (Ba3 stable) plan to list Sunrise UPC in Switzerland and distribute all the shares of its Swiss subsidiary to its shareholders over the second half of 2024. Before completion of the listing, Sunrise UPC plans to repay up to CHF 1.5 billion of debt, to be funded from an equity injection from Liberty Global as well as excess cash flow generated over the year. The new net leverage target of the company will be set at 3.5x-4.5x post listing, compared to the current level of 6x,” Moody’s said in a press release.

The agency said that the repaid debt should support a decrease in Moody's-adjusted leverage towards 5x in 2024-2025 from more than 6.5x in 2023.

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