In light of today's C&W news release, this might be of interest:
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DCR Rates Cable & Wireless Communications $700MM Bond Issue 'A-'
PR Newswire - November 24, 1998 10:33
LONDON, Nov. 24 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has assigned a 'A-' (Single-A-Minus) rating to Cable & Wireless Communications (CWC) forthcoming $700 million bond issue due 2008. The proceeds from this bond issue are to be used to repay a portion of the group's existing bank debt facilities.
DCR's rating assessment reflects the fact that CWC is the only telecommunications service provider in the UK that can effectively bundle international and national long distance, local telephony and pay television services to consumers within a large licensed service territory. It is expected that CWC will be able to leverage these capabilities into higher market penetrations and revenue growth through effective pricing and advertising as well as network expansion and the offering of new products and services. The benefits of this strategy can already be seen in the group's most recent interim financial results. DCR expects that credit protection measures will continue to improve in the short-to-medium term.
The rating assessment also reflects CWC's strong competitive position. The dominant competitor in each of CWC's market segments is competitively restricted through either regulatory or technological challenges from offering a full array of integrated telecommunications services. No other operator has clearly distinguished itself as a third-strongest competitor, creating an environment similar to a duopoly for CWC in its key business segments. It is expected that government regulation will continue to favour facility-based competition, and this should provide CWC with the opportunity to continue to grow its business.
From a business perspective, DCR believes that CWC benefits from its ultimate ownership by Cable & Wireless plc. But from a financial perspective, DCR's rating reflects CWC's stand-alone credit position.
DCR's full Credit Analysis report on CWC can be obtained by accessing DCR's Web site at www.dcrco.com or by contacting the DCR Hotline at 312-368-3198.
SOURCE Duff & Phelps Credit Rating Co.
/CONTACT: Martin J. Squires, 44-171-417-7925, or squires@dcrco.com, or
Raymond Hill, 44-171-417-7948, or hill@dcrco.com, or Michael Weaver,
312-368-3156, or weaver@dcrco.com, all of Duff & Phelps/
(DCR) |
