[December 18, 2014]

Fitch: Rating Outlooks Remain Stable Across U.S. Telecom, Media and Technology Sectors

The impact of higher wireless spectrum valuations, evolving media consumption patterns and the acceleration of the adoption of software as a service, virtualization, cloud and software-defined networking are among the key considerations discussed in Fitch Ratings' 2015 outlook for the U.S. Telecommunications and Cable, Media & Entertainment, and Technology sectors released today.

Fitch believes merger and acquisition related event risk will remain moderate during 2015. Fitch does not foresee significant incremental business separations within the technology sector following the planned split for both eBay (News - Alert) and HP, although both transactions are deviations from previously articulated strategies. Slowing growth and secular shifts could spur incremental acquisition activity within the technology sector that are at least partly debt financed.

The regulatory climate within the telecommunications and cable sector will not support further meaningful consolidation within the sector over the medium term, while pending consolidation among multichannel video programming distributors will not pose a near-term threat to the operating profiles of the issuers within the media and entertainment sector.

The bidding in the FCC's (News - Alert) auction of advanced wireless services (AWS-3) spectrum has surpassed Fitch's initial expectations. The higher spectrum valuations underscore wireless carriers' need to acquire spectrum to support rapidly growing data consumption. The effect of the auction valuations could cause some downward rating pressure deending on each particular issuer's funding strategy.

The reports: '2015 Outlook: Telecommunications and Cable', '2015 Outlook: U.S. Media & Entertainment', and '2015 Outlook: U.S. Technology' are available at www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: 2015 Outlook: U.S. Media & Entertainment (Cloud Looming Over Stable Credit Profiles in 2015)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=835228

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

[ Back To TMCnet.com's Homepage ]