Moody's: No change for telecoms

Moody's Investors Service said Germany's largest-ever mobile network auction, expected to start in April, is unlikely to affect the debt metrics of any rated companies.

As the German telecommunications market prepares itself for a large-scale auction of mobile network spectrum, there are two key questions affecting the bidding companies, Moody's said in a new report.

The first relates to whether they will overpay and what the rating implications of the costs of any purchases will be, the agency said.

The second is whether any company that loses out on obtaining additional spectrum in the auction will still have a viable business model in Germany, Moody's added.

Although names of the bidders have not yet been released, Moody's said it anticipates participation from four rated companies - Deutsche Telekom (rated Baa1), Vodafone (Baa1), Telefónica (Baa1) and KPN (Baa2).

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