Cyfrowy Polsat’s and Polkomtel’s ratings placed on Standard&Poor’s CreditWatch Positive

04 May 2015

In connection with the information regarding refinancing of its total debt being contemplated by Cyfrowy Polsat Group, Standard&Poor's Rating Services (S&P) placed Cyfrowy Polsat’s and Polkomtel’s ratings on its CreditWatch Positive.

The ratings placed on S&P’s CreditWatch Positive include ‘BB’ long-term corporate credit ratings of Cyfrowy Polsat and Metelem, the ‘BB’ rating on Cyfrowy Polsat’s term loan in the amount of PLN 2.5 bn and the senior secured revolving credit facility of PLN 500 mill., as well as the ‘B+’ rating on the high yield bonds issued by Eileme2.

S&P’s decision stems from the positive assessment of the contemplated refinancing of the Group’s total debt. In S&P’s view the move could bring numerous benefits for the Group:

  • access to Metelem’s cash flows as a result of potential reduction of the restrictions imposed by the debt documentation,
  • minimization of currency risk connected with the switch to PLN financial instruments contemplated by the Group,
  • lower cost of debt.

It is not only the contemplated refinancing but also the completed integration of Cyfrowy Polsat and Polkomtel, the business potential of the combined Group and, consequently, the greater diversification of the product and service portfolio, the development of smartDOM convergent offer and the fact of owning the largest in Poland LTE network that are viewed very positively by S&P.

S&P will take the decision regarding raising the ratings for Cyfrowy Polsat and Polkomtel within a timeframe of 3 months during which it expects the Group to finalize the refinancing.

Cyfrowy Polsat is currently involved in preliminary analyses regarding the possibilities and the potential terms of refinancing of the Capital Group’s debt having the total amount of PLN 13 bn. The goal of the potential refinancing exercise is to simplify its structure as well as to obtain further optimization of its terms and reduce the debt servicing cost.

Market analyses and consultations are carried out on behalf of the company by Trigon Brokerage House.

The potential decision to go ahead with refinancing as well as the selection of the final structure of such refinancing will depend on, among others, the positive outcome of current analyses as well as the present situation on financial markets. The decision will be communicated to the public while observing the company’s relevant disclosure requirements.

Last updated 05/04/2015