Call it a week: European IG and HY TMT update

Research evidence excerpt

Call it a week: European IG and HY TMT update

ad Holding receives one-notch lift by S&P to BB+.

• The action reflects the company's sustained deleveraging trajectory, driven by a

differentiated, asset-light business model and consistent organic growth across its

core markets of France, Poland, Italy, and Latin America, which have collectively

supported meaningful improvements in profitability and cash flow generation.

• While the pending Altice France acquisition introduces a temporary leverage

spike at closing, S&P takes comfort in Iliad's demonstrated track record of

integrating acquisitions and managing leverage back within its stated financial policy

targets within a relatively short timeframe.

• The stable outlook reflects S&P's expectation that Iliad will continue to grow

revenue and EBITDA sustainably, keeping leverage comfortably within the

threshold for the current rating, with a downgrade contingent on a more aggressive

acquisition strategy, integration missteps with Altice France, or unexpected

competitive or operational pressures, while an upgrade remains remote given Iliad's

current financial policy.

ITV (ITVLN): Agrees sale of its Media & Entertainment (M&E) unit to Sky for total

consideration of up to £1.6bn.

• The transaction creates a combined UK broadcaster and streaming platform

positioned to compete more effectively with global streaming players. The

consideration comprises £1.2bn of cash at completion, the contribution of Love

Productions at an agreed EV of £200m, and up to £200m of contingent consideration

linked to 2027 advertising revenue performance. After transaction and separation

costs, ITV expects net cash proceeds of ~£1.05bn, with ~£950m, equivalent to 25p/

share and ~90% of net proceeds, earmarked for return to shareholders.