S&P rates Bcom notes BB-

Standard & Poor’s said it assigned a BB- long-term corporate credit rating to B Communications Ltd. (Bcom).

The outlook is stable.

The agency also said it assigned a BB- rating to the group’s $800 million senior secured notes.

The ratings reflect the company’s highly leveraged financial risk profile and strong business risk profile, S&P said.

Bcom raised $800 million senior secured notes and used the proceeds to refinance bank loans and institutional debt, the agency said.

The company hedged about 90% of its exposure to euro- and dollar-denominated debt, according to base-case assumptions, S&P said.

It has the leading brand name and market position in most segments, the agency said.

But the company’s business risk profile is constrained by operations in the highly competitive Israeli telecommunications market, particularly the wireless market, leading to low average revenue per user and high churn, S&P added.

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