S&P puts SBS Broadcasting on positive watch

Standard & Poor's said it has placed its B+ long-term corporate credit and B senior unsecured debt ratings on Luxembourg-based broadcaster SBS Broadcasting SA on CreditWatch with positive implications.

S&P said the action is in response to the group's improving financial profile and pending sale of its 30% stake in Polish broadcaster TVN Sp. (B/stable/--) for €131.5 million ($155.5 million).

"SBS' performance has been strong over the past year and the proceeds from the sale of the group's stake in TVN are expected to be used to repay debt, thereby further improving the group's financial profile," said S&P credit analyst Olli Rouhiainen. "The expected potential uplift for the ratings on SBS is between one and two notches."

The sale of SBS' stake in TVN to International Trading and Investments SA is expected to close by Dec. 31, at the latest. TVN has launched a bond, which will provide the funding for ITI to purchase SBS' stake.

At Sept. 30, SBS had total debt of €197 million.

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