S&P upgrades OTE, debt

S&P said it raised its long-term issuer credit rating on Hellenic Telecommunications Organization SA (OTE) to BB+ from BB.

The outlook is positive.

The agency affirmed the B short-term issuer credit rating on OTE.

At the same time, the agency raised to BB+ from BB the issue ratings on the senior unsecured debt issued by OTE plc.

The recovery rating is unchanged at 3 (recovery prospects: 65%), capped by the unsecured nature of the debt.

“The upgrade follows our upward revision of Greece's country risk, linked to steps the authorities have taken to ease (albeit not entirely abolish) capital controls, and to improving economic prospects and policy predictability,” S&P said in a news release.

“As OTE generates more than 70% of its revenues and more than 80% of its EBITDA in Greece, this materially affects our assessment of its business risk and stand-alone credit quality.”

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