S&P ups SBS Broadcasting senior debt to BB-

Standard & Poor's said it raised its long-term corporate credit rating on Luxembourg-based broadcaster SBS Broadcasting SA to BB from B+ following its improving business and financial profile, and the senior unsecured debt ratings were raised to BB- from B.

The outlook is stable.

"SBS' profitability has strengthened over the past 12 months, as the company's portfolio of European TV and radio assets matured, and this has improved its financial profile," said S&P credit analyst Olli Rouhiainen.

Furthermore, the €131.5 million ($160.5 million) proceeds from the sale of its 30% stake in Polish broadcaster TVN Sp. z o.o. (B/stable/--) have transformed the group's liquidity and capital structure.

The company's lease-adjusted total debt to EBITDA ratio is expected to improve to below 3x for the full-year 2003 from about 7.2x in 2002, and total debt to free cash flow generation is expected to be more than 20%, after being negative in financial 2002.

S&P said the ratings on SBS reflect the group's portfolio of niche TV and radio stations in several highly competitive commercial broadcasting markets, its exposure to cyclical TV advertising revenues, and the existence of minority shareholders, who can affect financial decisions at subsidiary levels.

These factors are partly offset by the protection offered by SBS' portfolio of broadcasting and media assets, barriers to entry owing to the need for a broadcasting license, improving profitability, and its fair financial profile, the agency said.

© 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.