S&P gives Net Servicos issue BB

Standard & Poor's said it assigned its BB senior unsecured debt rating to Net Servicos de Comunicacao SA's new $200 million, 10-year senior unsecured debt issue.

The agency said that the new issuance will mostly fund the acquisition of pay-TV assets operating under the brand name BIGTV, adding that Net Servicos entered into an agreement to acquire BIGTV in December, pending regulatory approval from Agência Nacional de Telecomunicações.

According to S&P, the ratings on Net Servicos reflect the challenging and competitive business environment, particularly with large telecom operators entering the pay-TV industry, which enhances their product offering, somewhat limited growth potential of pay-TV services in Brazil because of the ample reach of open-air television and income constraints and heavier capital expenditure requirements on digitalization and bidirectional networks.

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