S&P rates Coral-US loan BB-

S&P said it assigned its BB- issue-level rating to Coral-US Co-Borrower LLC's new $1.83 billion secured term loan due 2026.

The agency said it views the transaction to be debt neutral because Cable & Wireless Communications Ltd. will use proceeds to repay the existing secured term loan for the same amount and pay any fees in connection with the new loan.

S&P said it believes the new term loan will somewhat improve the company’s maturity debt profile to 7.2 years from 6.8 years, and the agency expects the company to be able to reprice its new loan with a lower interest rate and generate some interest savings in the future.

The ratings on Cable & Wireless reflect its leading position as a wireline and wireless telecommunications and cable TV provider in most of the markets in which it operates, as well as solid profitability, wide geographic, product and customer diversification, intense competitive pressures and overall relatively high country risk, the agency said.

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