Moody's gives Baa1 to Telekom Slovenije notes

Moody's Investors Service said it assigned a provisional Baa1 rating to Telekom Slovenije dd.'s expected €300 million seven-year senior unsecured notes.

The outlook is negative.

Telekom Slovenije's Baa1 issuer rating reflects the group's operating performance, which has deteriorated partly as a result of its transition to a convergence strategy, as well as a consequence of enhanced competitive and regulatory pressures and an adverse macro-economic backdrop, according to the agency.

The rating also reflects concerns that this deterioration will delay the group's prospects for reverting to a meaningful positive free cash flow position in 2009, following a substantial capital expenditure program in 2007 and 2008, the agency noted.

The Baa1 issuer rating assumes the group will keep it adjusted debt-to-EBITDA ratio below 2.5x and will revert to material positive free cash flow generation, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.