S&P puts Euronext on watch

S&P said it placed Euronext NV's A long-term and A-1 short-term issuer credit ratings on CreditWatch with negative implications, along the A issue credit rating on its senior bonds.

The agency said it expects to resolve the CreditWatch placement in the coming months.

The negative watch reflects Euronext's intention to substantially increase financial leverage over the next year following news that it plans to acquire up to 100% of Oslo Børs VPS, S&P explained.

The acquisition will reinforce Euronext's business model by adding a presence in the Nordic market and increasing revenues, the agency said.

The deal will modestly enhance Euronext's revenue stability, thanks to higher diversification, S&P added.

But because the deal will be debt-financed, the agency also thinks it could worsen Euronext's financial risk profile.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.