Moody’s revises Ziggo to negative

Moody's Investors Service said it affirmed the Ba3 corporate family rating of Ziggo Group Holding BV.

At the same time, the agency affirmed the ratings of the existing debt issued by Ziggo Bond Finance BV, Ziggo Secured Finance Partnership, Ziggo Secured Finance BV, the SPV borrowing vehicles indirectly owned by a Dutch Foundation that on-lend funds to the ring-fenced group below Ziggo Group Holding.

The outlooks on all ratings were changed to negative from stable.

Moody’s said the affirmation assumes the successful closing of the 50%-50% joint venture between the company and Vodafone Netherlands around the end of 2016.

"The negative ratings outlook reflects the high starting leverage for the JV at a time when there is a risk that Ziggo's operating performance could continue to remain pressured beyond 2016 given the tough market conditions," Gunjan Dixit, Moody's vice president, senior analyst and lead analyst for Ziggo, said in a news release.

"Notwithstanding the strong industrial logic of the JV and Vodafone's and Liberty Global's proven track record in achieving synergies, the negative outlook also captures some execution risks given the untested nature of the collaboration of the two companies in a joint control environment."

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