MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said
Vodafone Group Plc.'s 'A-'/'A-2' ratings and stable outlook remain unchanged by
the U.K.-based telecommunications provider's 1 billion pound share buyback
programme plan announced Wednesday.
S&P said the announcement comes in the wake of weaker European organic
revenue development, particularly in Spain.
S&P added that while Vodafone's revenue guidance for financial 2009 is at
the lower end of expectations, at 39.8 billion pounds, profitability and cash
flow guidance remains unchanged.
Vodafone has chosen to reduce its rating headroom to accommodate the new
share buyback, which moves the adjusted debt-to-EBITDA ratio for the year ended
March 31, 2008, pro forma for the buyback, to 2.3 times from 2.2 times, the
rating agency noted.
Nevertheless, S&P expects the group to contain any peak in leverage at below
2.5 times adjusted debt-to-EBITDA, assuming rapid de-leveraging thereafter
toward the current level of 2.2 times.
TFN.newsdesk@thomson.com
arc/ypv
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