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TEXT-S&P ups Cableuropa to 'B+'; prop nts rtd 'B+'
May 30, 2012 / 10:43 AM / 5 years ago

TEXT-S&P ups Cableuropa to 'B+'; prop nts rtd 'B+'

May 30 -


-- Spanish cable operator Cableuropa S.A.U. has secured the refinancing of its outstanding EUR1.4 billion bank facilities maturing in 2013 with new long-term debt.

-- The completion of the refinancing transaction, together with the conversion of shareholder loans and associated accrued interest into common equity, resulted in a slight decline in debt leverage and strengthened Cableuropa’s liquidity.

-- We are raising our long-term corporate credit rating on Cableuropa to ‘B+’ from ‘B’.

-- We are also raising our issue ratings on its senior secured notes to ‘B+’ from ‘B’ and on its unsecured notes to ‘B-’ from ‘CCC+', and assigning a ‘B+’ issue rating to its proposed secured notes.

-- The stable outlook reflects our expectation that Cableuropa will deliver a resilient operating performance in its core residential segment and maintain adjusted total debt to EBITDA below 5.0x over the next 12 months.

Rating Action

On May 30, 2012, Standard & Poor’s Ratings Services raised to ‘B+’ from ‘B’ its long-term corporate credit rating on Spanish cable operator Cableuropa S.A.U. The outlook is stable.

We also raised our issue ratings on the existing senior secured notes issued by special-purpose vehicle (SPV) Nara Cable Funding Ltd. to ‘B+’ from ‘B’, and on the unsecured notes issued by financing vehicles ONO Finance PLC and ONO Finance II PLC to ‘B-’ from ‘CCC+'. The recovery rating on the unsecured notes is ‘6’, indicating our expectation of negligible (0%-10%) recovery in the event of a payment default.

At the same time, we assigned a ‘B+’ issue rating to the proposed EUR224.3 million euro-equivalent senior secured notes, due 2018, to be issued by Nara Cable Funding Ltd., and to the proposed loan facility (“SPV Tranche 4”) through which Nara Cable Funding will lend the proceeds of the proposed notes, if issued successfully, to Cableuropa. The recovery rating on the proposed loan facility is ‘3’, reflecting our expectation of meaningful (50%-70%) recovery for the lenders in the event of a payment default.

The existing and proposed senior secured notes do not have recovery ratings.

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