...Lorca Holdco Limited's (Lorca) B1 corporate family rating (CFR) was placed on review for downgrade following the announcement that Masmovil Ibercom, S.A. (Masmovil) had launched a takeover bid to acquire Euskaltel, S.A. (Euskaltel, B1 review for downgrade) for 2 billion in an all-cash offer. The debt-financed acquisition of Euskaltel will likely result in temporarily weaker-than- expected credit metrics including leverage peaking at more than 6x, based on preliminary calculations before synergies and disposals. The company had previously grown rapidly through M&A although with higher integration and execution risks. Before this transaction, Masmovil's rating was already weakly positioned at B1. Nevertheless, Masmovil will benefit from an increase in scale and a further strengthening in its market position and resilience, which may offset the weaker credit metrics. The review will focus on the financing of the transaction, the strategy of the combined group and the potential for synergies,...