Moody's: eircom notes Caa1

Moody's Investors Service said it assigned a provisional Caa1 rating and loss given default assessment of LGD 3 to the proposed €310 million of senior secured notes due 2020 to be issued by eircom Finance Ltd., an indirectly wholly owned subsidiary of eircom Holdings (Ireland) Ltd.

eircom's Caa1 corporate family rating and Caa1-PD probability of default rating remain unchanged, as well as the Caa1 rating on the €2.3 billion senior secured credit facility due 2017 raised by eircom Finco Sarl.

The outlook is stable.

The Caa1 rating on the proposed senior secured notes is in line with eircom's corporate family rating and with the rating on the €2.3 billion senior credit facility, Moody's said.

The new notes are guaranteed by the same entities that guarantee the senior credit facility, the agency said, and are secured over the same collateral on a pari passu basis with the senior credit facility.

The group will use the proceeds from the notes issuance to refinance part of the existing senior credit facility at a price below par, Moody's said.

This refinancing exercise does not have an impact on eircom's rating or its stable outlook, given that the group's leverage ratios will remain broadly unchanged, the agency said.

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