S&P rates Nara Cable notes B+

Standard & Poor's said it assigned a B+ rating to the proposed €250 million senior secured notes due 2020 to be issued by the special-purpose vehicle Nara Cable Funding II Ltd.

Nara Cable Funding is issuing the notes on behalf of Cableuropa SAU.

The rating on the proposed notes is in line with the corporate credit rating on Cableuropa, S&P said.

If the issuance is successful, Nara Cable Funding will lend the proceeds to Cableuropa through a proposed loan facility, the agency said.

The agency also assigned a recovery rating of 3 to the proposed notes, reflecting a 50% to 70% expected default recovery.

Cableuropa plans to use the proceeds of the proposed issuance to pre-pay part of its existing senior secured term loan A, S&P said.

Nara Cable Funding is an orphan SPV whose activity is limited to the issue of the notes and the on-lending of the proceeds to various group entities. These features offset the fact that neither Cableuropa nor any of its subsidiaries guarantee or provide any credit support to Nara Cable Funding, the agency said, and that the notes do not have a direct claim on the cash flows and the assets of the Cableuropa group.

The existing issue and recovery ratings on Cableuropa's debt were affirmed, S&P added.

The ratings reflect Cableuropa's solid market position and network infrastructure, the agency said.

The ratings are constrained by the likelihood of Cableuropa's Spanish domicile adversely influencing insolvency proceedings, S&P said, and the high proportion of senior secured debt instruments in the capital structure.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.