S&P: Cell C on positive watch

Standard & Poor's said it placed its B- long-term corporate credit and debt ratings on Cell C (Pty) Ltd. on CreditWatch with positive implications.

The agency said that this follows an announcement by Saudi Oger Ltd., Cell C's ultimate parent, of its offer to purchase all or part of Cell C's public debt.

On April 29, S&P said that Saudi Telecom Co. (foreign currency A+/stable/A-1) completed the acquisition of a 35% stake in Saudi Oger, which could be viewed as triggering a change of control clause under the terms of the indentures governing Cell C's €400 million and $270 million outstanding notes.

The agency noted that the CreditWatch placement reflects the potential positive effect that a debt buyout by Saudi Oger would have on the ratings on Cell C.

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