S&P rates Damovo notes CCC+

Standard & Poor's said it assigned its B long-term corporate credit rating to Damovo Group SA. The outlook is stable.

At the same time, the €350 million senior secured notes due 2012 - split between a fixed- and a floating-rate tranche to be issued by Damovo's Luxembourg-based guaranteed subsidiary, Damovo III SA, were rated CCC+ and assigned a recovery rating of 4.

S&P said the rating on Damovo reflects the group's limited size and diversification in the competitive information and communication technology market; aggressive leverage, which is only partly offset by its sound client portfolio in the public sector; and adequate liquidity. Damovo benefits, however, from its strong presence and track record in the growing public sector customer segment of the highly fragmented telecoms services industry.

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