S&P: KPN view to positive

S&P said it revised the outlook to positive from stable on Koninklijke KPN NV.

The agency also said it affirmed the BBB- long-term and A-3 short-term corporate credit ratings on the group.

While the company is expected to sustain its EBITDA turnaround in the next few years, management will likely seek to steadily reduce leverage through the combined application of positive discretionary cash flows and additional proceeds from the monetization of KPN's financial assets toward debt reduction, S&P explained.

That lead to the outlook revision, the agency said.

These factors could lead to the company's adjusted metrics strengthening materially, including a debt-to-EBITDA ratio to less than 3x from 3.2x in 2016, S&P said.

Despite continuing headwinds in the business-to-business (B2B) segment, the consumer segments will likely continue to provide some positive revenue traction, the agency added.

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