Fitch lowers Cableuropa view to stable

Fitch Ratings said it revised the outlook on Cableuropa SA's long-term issuer default rating to stable from positive and affirmed the long-term issuer default ratings and short-term issuer default ratings at B.

The agency also said it affirmed Cableuropa's senior secured bank rating at BB- with a recovery rating of RR2, along with Nara Cable Funding's senior secured bonds at BB- with a recovery rating of RR2, Nara Cable Funding II's senior secured bonds rating at BB- with a recovery rating of RR2 and ONO Finance II plc's unsecured notes rating at CCC+ with a recovery rating of RR6.

The outlook revision reflects the difficult market conditions that Cableuropa faces in 2013, Fitch said.

The challenges include an intensifying competitive environment, austerity measures that directly affect the company's cash flow in terms of tax and negative working capital flows and the obvious impact that the economy and high unemployment rates were having on communications spending, the agency said.

The changing revenue mix is expected to stabilize in 2013, Fitch said.

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