TEXT-S&P:Cable & Wireless rtgs unaffected by M&I disposal
Dec 06 - Standard & Poor's Ratings Services said today that its ratings and outlook on U.K.-based telecommunications services provider Cable & Wireless Communications PLC (CWC) (BB/Stable/B) are unaffected by an agreement to sell its Monaco and Islands business to Bahrain Telecommunications Company (BBB-/Negative/A-3). We understand that the transaction is subject to regulatory approval and expected to close in 2013 or 2014.
The disposal impact on our assessment of the company's business risk profile as "fair" would be limited given the modest impact on profitability, in our view, while CWC would remain diversified with operations in 21 markets. Likewise, our "significant" financial risk profile assessment is unaffected, under our assumption that the company would use part of the proceeds for deleveraging.