PARIS (S&P Global Ratings) Jan. 15, 2021--S&P Global Ratings today said that the planned sale of tower division, Telxius, to American Towers Corp. slightly improves Telefonica S.A.'s (BBB-/Stable/A-3) rating headroom. Pro forma the transaction Telefonica's S&P Global Ratings-adjusted debt to EBITDA will reduce in 2021 by 0.2x-0.3x versus our previous base case. The transaction has the highest valuation multiple paid in Europe and the buyer has committed to provide services at similar terms as those agreed between Telefonica's subsidiaries and Telxius until these contracts mature. We now forecast our adjusted debt to EBITDA of 3.8x-4.0x in 2021 (approximately 4.0x in our previous base case), and 3.6x-3.8x in 2022 (3.9x-4.0x in our previous base case), after accounting for estimated transaction proceeds
