Moody's rates ETB notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Empresa de Telecomunicaciones de Bogota's proposed senior unsecured global notes for an amount up to $300 million or equivalent in Colombian pesos.

Simultaneously, Moody's assigned a Ba1 corporate family rating to the company and withdrew its Baa3 long-term issuer rating. The outlook is negative.

The agency said the effective ratings downgrade was based on the increasingly competitive environment that will weaken ETB's operating performance, with negative effect on its credit profile, as well as the challenges it faces in executing its new, expansionary business strategy.

Moody's said the Ba1 ratings and the negative outlook reflect the application of the agency's methodologies for government-related issuer and joint default analysis, with the expectation of high default correlation and a moderate expected level of support by the City of Bogota in the event of financial stress.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.