Moody's may upgrade UPC Holding

Moody's Investors Service said it placed UPC Holding BV's Ba3 corporate family rating and Ba3-PD probability of default rating on review for upgrade.

The agency also placed on review the company's Ba3 ratings on the senior secured debt rating, along with the B2 ratings on the senior unsecured debt issued by UPC's finance subsidiaries.

The review follows news that UPC will be acquired by Sunrise Communications Group for CHF 6.3 billion. The company is currently owned by Liberty Global plc.

Sunrise also will acquire UPC Holding's existing senior and senior secured notes and other debt items of about CHF 3.6 billion as of Dec. 31, 2018.

Liberty will receive proceeds of about CHF 2.6 billion, Moody's noted.

The review is based on an opinion that UPC Holding will become part of a larger integrated combined group that will form a strong challenger in the Swiss market, the agency said.

But the ratings also recognize the execution risks associated with securing Sunrise's shareholders' approval for the announced deal, Moody's said.

The review could result in a one notch upgrade of UPC's outstanding ratings, the agency said.

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