Standard & Poor’s will not give explicit equity credit to the £3.4bn of mandatorily convertible bonds issued by Vodafone a fortnight ago. But S&P will give some rating benefit, and the UK telecoms company is cheerful about the result. Some bankers believe other issuers will follow suit, writes Jon Hay.
The extraordinary deal, issued on March 5, is designed to provide ballast to Vodafone’s balance sheet as it pays an €18.4bn enterprise value to take over Unitymedia, the German and central European business of Liberty Global.
Vodafone is anxious to protect its credit ratings by not taking on too