Netherlands-Based Ziggo Group 'BB-' Rating Affirmed On Announced Recapitalization; Outlook Stable

Dutch cable operator Ziggo Group Holding B.V. is issuing €2.6 billion equivalent of senior secured notes and $625 million in senior unsecured notes. Proceeds will be used to repay debt and make a €2.8 billion shareholder distribution. The issuance follows the European Commission's conditional approval, granted on Aug. 3, for the merger of Ziggo and Vodafone Netherlands into a new 50/50 joint venture. We expect closing in late 2016 or early 2017. We expect S&P Global Ratings-adjusted leverage to remain sustainably between 5x and 6x, despite higher debt, given the additional EBITDA inflow from Vodafone Netherlands. We continue to anticipate a moderate degree of support to Ziggo from both parents. We are therefore affirming our 'BB-' long-term corporate credit rating

...+ Dutch cable operator Ziggo Group Holding B.V. is issuing 2.6 billion equivalent of senior secured notes and $625 million in senior unsecured notes. Proceeds will be used to repay debt and make a 2.8 billion shareholder distribution. + The issuance follows the European Commission's conditional approval, granted on Aug. 3, for the merger of Ziggo and Vodafone Netherlands into a new 50/50 joint venture. We expect closing in late 2016 or early 2017. + We expect S&P Global Ratings-adjusted leverage to remain sustainably between 5x and 6x, despite higher debt, given the additional EBITDA inflow from Vodafone Netherlands. We continue to anticipate a moderate degree of support to Ziggo from both parents. + We are therefore affirming our '##-' long-term corporate credit rating on Ziggo. We are assigning a '##-' issue rating to Ziggo's senior secured debt and a 'B' issue rating to its unsecured debt. + The stable outlook reflects our view that Ziggo's stabilizing performance and stand-alone credit...

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