Fitch rates UPC BB-; debt BB, B

Fitch Ratings said it assigned UPC Holding BV a long-term issuer rating of BB- with a stable outlook.

The agency also BB/RR4 ratings to UPC Financing Partnership’s secured revolving credit facility and senior secured bank debt, UPCB Finance IV Ltd.’s senior secured notes and senior secured bank debt, UPCB Finance VI Ltd.’s senior secured notes. It also assigned a B/RR6 rating to UPC Holding’s senior notes.

Fitch said the ratings take into account UPC's diversified portfolio of cable operations, sound underlying cash flow and leverage.

In Switzerland, the group's largest market, UPC faces an incumbent that has invested well in fiber; the agency believes Swisscom's domestic market position is stronger than some of its European peers.

Fitch said it expects UPC's free cash flow (FCF) margin over the next few years to remain in low-double-digit percentages, which is consistent with the rating.

The cable footprint in the countries UPC operates in is more fragmented than in some of parent company, Liberty Global's other businesses. This may lead to a higher incidence of bolt-on acquisitions.

© 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.