Moody's downgrades eircom

Moody's Investors Service said it downgraded the corporate family rating of eircom Group plc to Ba3 from Ba2, the rating of Valentia Telecommunications Unlimited's €550 million unsecured notes due 2013 to B2 from Ba3 and the rating of eircom Funding plc's €285 million and $250 million senior subordinated notes due 2013 to B2 from B1.

The rating on the existing €1.4 billion senior secured credit facilities was also downgraded to Ba3. The outlook on the ratings is stable and reflects Moody's expectation that the company will be able to execute its current business plan successfully, focusing on the development of its growing mobile operations.

The agency noted that BCM Ireland Holdings Ltd., the financial sponsor-owned entity that acquired eircom Group in a leveraged buyout, has tendered for the Valentia Telecommunications and eircom Funding bonds. The ratings of these bonds reflect Moody's assessment of the potential credit risk for any bonds that are not tendered.

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