Virgin Media’s Martin Says Crisis Has Deterred Euro Bond Sales
Virgin Media Inc. (VMED), the U.K.’s second- largest pay-television company, is less likely to sell bonds in euros because of the Europe’s debt crisis, according to the company’s treasurer Rick Martin.
Virgin Media, which mainly issues securities in dollars and pounds, will “have even less tendency to issue in euros now,” Martin said at an Association for Financial Markets in Europe conference in London. Virgin will continue to sell bonds in the U.K. and U.S. currencies, he said.
The pay-television company last issued euro-denominated debt in May 2009 when it raised 180 million euros ($248 million) from 9.5 percent notes due 2016, according to data compiled by Bloomberg.
Virgin Media, based in Hook, England, is rated Ba1 by Moody’s Investors Service and an equivalent BB+ at Fitch Ratings. Standard & Poor’s ranks it one level lower at BB. High- yield, or so-called junk companies, are graded below Baa3 by Moody’s and less than BBB- by S&P and Fitch.
Junk-rated bond sales in euros from non-financial companies fell 17 percent to 25.5 billion euros this year, Bloomberg data show.
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