S&P ups Modern Times view to positive

Standard & Poor's said it revised its outlook on Modern Times Group AB to positive from stable, reflecting the group's significant improvements in the operating performance of its broadcasting businesses.

At the same time, S&P said it affirmed its BB+ long-term corporate credit rating and its BB- subordinated debt rating on the group.

S&P said the outlook revision follows Modern Times' strong operational momentum in the last 12 months. The group's business profile is now seen as borderline investment grade, reflecting its track record of organic growth and improving profitability.

The ratings on Modern Times continue to reflect, however, the group's exposure to cyclical advertising revenues, modest growth prospects in its Scandinavian operations and growth strategy that focuses on the more risky Eastern European countries, the agency noted.

These negative factors are tempered by Modern Times' competitive business positions in the Scandinavian and Baltic States free-to-air and pay-TV markets and good balance of advertising and subscription revenues, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.