Moody's downgrades OTE

Moody's Investors Service said it downgraded Hellenic Telecommunications Organization SA's corporate family rating to Caa1 from B3 and probability of default rating to Caa2 from B3.

Concurrently, Moody's also downgraded the senior unsecured ratings on the global medium-term notes and global bonds issued by OTE plc to Caa1 from B3.

The outlook is negative.

Moody's said the ratings are based on Moody's view of a lower expected loss for debt under foreign law than debt under Greek law.

This reflects the view that these notes carry a lower risk of redenomination and, in turn, of immediate default in the event of Greece exiting the euro area, the agency said.

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