S&P affirms Cableuropa

Standard & Poor's said it affirmed the B long-term corporate credit rating on Cableuropa SAU following the group's fourth-quarter trading update.

S&P affirmed the CCC+ long-term debt rating on the senior unsecured debt issued by financing vehicles ONO Finance plc and ONO Finance II plc and guaranteed by Cableuropa.

The outlook remains positive.

Cableuropa continues to be Spain's main alternative provider of triple-play services and is supported by its strong operating and management track record, according to the agency.

The group's rating continues to be constrained by substantial negative free operating cash flow generation resulting from investments and interest payments, high financial leverage and ongoing risk in transforming and integrating Auna, S&P said.

Ratings could be upgraded if Cableuropa performs well in a more competitive market and reaches positive free cash flow generation, with an adjusted gross debt-to-EBITDA ratio of less than 5 times, the agency said.

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