S&P has raised TEF 02 CR's credit outlook from negative to stable following a similar upgrade of its parent TEF's own credit outlook rating, on the back of reduced acquisition event risk.
Our view:
Although the news could have a short-term slight positive trading impact, we note that the news given that it simply follows a similar move for its parent and is not reflective of TEF 02 CR's own fundamentals. We maintain our Hold recommendation on the stock.