S&P upgrades Ypso

Standard & Poor's said it raised the long-term corporate credit rating on Ypso Holding Sarl to B+ from B, along with its senior secured notes to B+ from B.

The agency also said it removed the ratings from CreditWatch, where they were placed with positive implications in September.

The outlook is stable.

The upgrade follows Numericable Group SA's public announcement that it intends to merge Ypso Holding Sarl with its sister company, Altice B2B Sarl.

The upgrade also reflects an expectation of a meaningful improvement in Ypso's financial risk profile following the initial public offering, S&P said.

As part of the IPO, Ypso converted all shareholder loans into common equity, the agency said. It also used part of the IPO proceeds to repay a portion of its expensive debt, S&P said.

The ratings reflect Ypso's fair business risk profile and aggressive financial risk profile, the agency said.

Underpinning the ratings includes Ypso's high-quality network infrastructure and steady growth, S&P said.

The ratings are constrained by fierce competition from the integrated French pay-TV, broadband and telephony markets, the agency said.

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