Research Update: Alcatel-Lucent 'B' Long-Term Rating Affirmed On Higher-Than-Expected Debt Issue, Off Watch; Outlook Negative Feb 13

Standard & Poors, February 2013

Abstract
Alcatel-Lucent has raised ?2.0 billion (equivalent) via senior secured facilities at its subsidiary Alcatel-Lucent USA Inc., which is ?0.4 billion more than we expected. The positive impact of this debt issue on the group's liquidity, and cash balances that were somewhat higher than we expected at year-end 2012, are largely offsetting our expectations of continued significant cash losses in 2013. We are affirming our 'B' long-term ratings on Alcatel-Lucent and Alcatel-Lucent USA and removing them from CreditWatch negative. The negative outlook reflects the possibility of a downgrade over the next 12 months if the group's currently adequate liquidity is impaired by continued significantly negative cash losses or substantial redemptions of debt maturities beyond 2015. On Feb. 18, 2013, Standard &...

Companies mentioned in this report are:
- Alcatel-Lucent
- Alcatel-Lucent USA Inc.

Action: Affirmed
Action: On CreditWatch:Negative
Action: Removed From CreditWatch

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

- Alcatel-Lucent
- Alcatel-Lucent USA Inc.

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