S&P lowers Sunrise view to negative

S&P said it revised the outlook on Sunrise Communications AG to negative from stable and affirmed its BBB- long-term issuer credit rating.

The company recently announced that it signed a binding agreement to acquire cable operator UPC Switzerland for a CHF 6.3 billion.

The agency said it thinks the acquisition enhances Sunrise's competitive advantage given the increase in scale, market share for broadband and demand for pay-per-view TV in Switzerland.

The acquisition also improves cost structure and the company's ability to offer convergent fixed and mobile services, S&P said.

The negative revision reflects an expected increase in leverage upon completion of acquisition, the agency said, along with meaningful integration risks.

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