Moody's may up EuroTel Bratislava

Moody's Investors Service said it placed under review for possible upgrade the ratings of EuroTel Bratislava a.s. Affected ratings include the senior implied rating at Ba2, the issuer rating at Ba2, and the SLK 5.0 billion senior unsecured credit facilities due 2009 at Ba2.

Moody's said the rating action is prompted by the announcement that Slovak Telecom a.s. has agreed to acquire the 49% holding it currently does not own in EuroTel from Atlantic West BV, a joint venture owned by U.S. carriers Verizon Communications and AT&T Wireless Services. Slovak Telecom is 51% owned by Deutsche Telekom (Baa2, under review for possible upgrade). The transaction is subject to regulatory approval.

The review reflects the potentially improved credit profile of EuroTel that could result from the company's consolidation with Slovak Telekom (the incumbent fixed-line operator in the Slovak Republic), should the acquisition eventually complete, and assumes that the financing of the deal would not result in material leverage increases for either EuroTel or both entities when considered on a consolidated basis.

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