S&P puts Valentia on positive watch

Standard & Poor's said it placed all its ratings, including its BB+ long-term corporate credit rating, on Valentia Telecommunications UPC and related entities on CreditWatch with positive implications.

This follows an announcement by Swisscom AG that it has entered into discussions with Valentia's owner, eircom Group plc, the Irish former incumbent fixed-line telecoms operator, in relation to a possible transaction.

S&P said the placement reflects the possibility that Valentia's credit quality could be enhanced to a level higher than reflected in the current ratings due to potential strategic and financial support or guarantees provided by Swisscom to eircom in the event of a transaction going ahead.

If Swisscom were to hold a controlling stake in eircom, the corporate credit rating on Valentia would most likely be raised to investment grade. In the absence of such a transaction, the ratings on Valentia would be affirmed, S&P said.

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