FRANKFURT (S&P Global Ratings) May 8, 2020--S&P Global Ratings today said that it does not expect the benefits from the planned joint venture (JV) between the U.K. mobile subsidiary of Spanish incumbent telecom operator Telefonica S.A. and U.K. cable operator Virgin Media to alleviate the near-term pressure on its ratings on Telefonica S.A. (BBB/Negative/A-2). We expect the combined operations to benefit from an improved competitive position as an integrated fixed-line and mobile operator, as well as revenue and cost synergies. However, in the near term, we consider these benefits to Telefonica's business profile to be balanced by its ceding partial control over and economic ownership in one of its key assets. We also don't expect the deal to materially improve
