Moody’s cuts Hellenic Telecommunications

Moody's Investors Service said it downgraded Hellenic Telecommunications Organization SA’s corporate family rating to B3 from Ba3 and probability of default rating to B3-PD from Ba3-PD.

Concurrently, the agency downgraded to provisional B3 from provisional Ba3 the senior unsecured ratings of the global medium-term note program and to B3 from Ba3 the rating on the global bonds issued by OTE plc (Hellenic Telecommunications’ fully and unconditionally guaranteed subsidiary).

The outlooks are negative.

This action follows Moody's decision to downgrade the Government of Greece's government bond ratings to Caa2 from Caa1 and foreign-currency ceiling to B3 from Ba3.

"While OTE has taken steps to insulate itself from the Greek economy, the company is predominantly a Greek business with approximately 70% of its revenues generated in Greece," Carlos Winzer, Moody's senior vice president and lead analyst for Hellenic Telecommunications, said in a news release.

"As such, the downgrade of the government bond rating exerts pressure on the ratings of OTE as the company's outlook will remain closely linked to conditions in its domestic environment."

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