Moody's cuts Ostregion debt

Moody's Investors Service said it downgraded to B2 from Ba2 the ratings of the following debt obligations of Ostregion Investmentgesellschaft Nr. 1 SA:

• €425 million of floating-rate guaranteed senior secured bonds; and

• €350 million floating-rate guaranteed senior secured bank loan provided by the European Investment Bank.

Moody's said the action reflects weak traffic volumes, potentially higher costs for the project and uncertainty around the terms of a minimum traffic guarantee provided by Autobahnen-Und Schnellstraflen-Finanzierungs AG, the Austrian government owned motorway agency.

The ratings have been placed on review for further downgrade.

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