Mexico’s Cablemas on Watch Positive

S&P has placed on credit watch positive the BB minus rating of Mexican cable, internet and phone provider Cablemas, including $175m senior notes due 2015. The action indicates the potential for an upgrade following the recent announcement authorizing the conversion of Grupo Televisa’s long-term convertible notes into 99.99% of the equity of Alvafig, which holds 49% of Cablemas’ voting equity, the agency says. Also helpful is the recent acquisition by Alvafig of an additional 11% of Cablemas, which eventually will lead Televisa to own about 60% of Cablemas stock. “We believe Televisa’s support of Cablemas is a major rating factor,” the agency says.