S&P Global Ratings revised its outlook on Sunrise Communications Group AG to stable from negative after the Swiss cable operator terminated its proposed acquisition of UPC Schweiz.
Sunrise will incur CHF120 million to CHF125 million of expenses and transaction cancellation penalties. The rating agency also affirmed the company's ratings at BBB-.
Ratings expects Sunrise's adjusted debt to EBITDA to rise to 3.2x in 2019, before improving to, or below, 3.0x in 2020-2021, excluding one-off costs.
The stable outlook on the company reflects Ratings' expectation that Sunrise will see moderate recurring EBITDA growth in the next 12 months to 24 months.
Liberty Global PLC in February agreed to sell UPC Schweiz to Sunrise for a total enterprise value of CHF6.3 billion. The deal secured regulatory approval in September.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.