S&P puts Bezeq bonds on creditWatch negative
JERUSALEM, Oct 28 (Reuters) - Standard & Poor's Maalot on Wednesday placed bonds of Bezeq Israel Telecom (BEZQ.TA) on "creditWatch" with a "negative" outlook in the wake of deal to sell a controlling stake in the country's largest telecoms company.
S&P's Israeli subsidiary affirmed its "AA+" rating for bonds of Bezeq, whose controlling shareholders on Sunday agreed to sell their 30.6 percent stake to 012 Smile (SMLC.O) (SMLC.TA) for 6.5 billion shekels ($1.73 billion). [ID:nLP676587]
"The rating move reflects our concerns that Bezeq's financial profile is could be weakened significantly as a result of this deal," S&P said. "This will happen if, for example, 012 Smile funds the acquisition by taking on big debt and by doing so increases pressure on Bezeq's financing ability."
012 Smile said on Tuesday it would divest some of its assets as a prerequisite for the purchase of the controlling stake in Bezeq from the Apax-Saban-Arkin group. 012 Smile is controlled by businessman Shaul Elovitch's Eurocom Communications. (Reporting by Joseph Nasr, Editing by David Holmes)
