Moody's upgrades OTE

Moody's Investors Service said it upgraded the corporate family rating of Hellenic Telecommunications Organization SA (OTE) to Ba2 from B1, along with its probability of default rating to Ba2-PD from B1-PD.

Moody's also said it upgraded its senior unsecured medium-term note program to provisional Ba2 from provisional B1, along with the senior unsecured global bonds to Ba2 from B1 issued by OTE plc.

The outlook was revised to stable from positive.

The upgrades primarily reflect the continued improvement in the Greek sovereign's credit profile and the outlook for economic growth, Moody's said.

That is a positive factor for OTE because it generates most of its revenues in the domestic market, the agency said.

The ratings also consider the company's strong standalone credit profile and an expectation that its operating performance will improve, supported by strengthening economic conditions in Greece despite ongoing challenges in the Romanian market, Moody's said.

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