...PARIS (S&P Global Ratings) Nov. 7, 2023--S&P Global Ratings today said that Telefonica S.A.'s (###-/Stable/A-3) announced offer to buy out the minority interests in its German subsidiary Telefonica Deutschland will not affect its ratings or outlook. Although such a transaction is negative for credit metrics, we think that the impact will be immaterial (around +0.05x adjusted leverage). In particular, because we pro rata consolidate the German subsidiary, the effect of the acquisition on our adjusted leverage ratio will be partially offset by the fact it carries comparatively lower leverage than the group. Therefore, in the theoretical case of a full buyout of the minorities where Telefonica S.A. would fully own Telefonica Deutschland, the effect of our pro rata adjustment would be an increase in adjusted EBITDA by about 0.8 billion and an increase in adjusted debt (in addition to the acquisition cost) by about 1.6 billion due to the increased stake in the German subsidiary. Moreover, the...
