TalkTalk Telecom Group PLC is the U.K.'s fourth-largest fixed-line carrier, with national coverage. It offers both fixed and mobile telecom services and pay-TV through its own networks as well as those of other carriers. TalkTalk is planning to issue £300 million of senior notes to refinance its existing senior debt facilities. We are assigning our 'BB-' long-term corporate credit rating to TalkTalk and our 'BB-' issue rating to the proposed debt. The positive outlook reflects the possibility that we may raise the rating by one notch over the next 6-12 months if we see revenues return to growth as well as material improvement in adjusted EBITDA margins and free operating cash generation, due to a significant decline in exceptional costs
