Moody’s could drop Telekom Slovenije

Moody's Investors Service said it placed Telekom Slovenije dd.'s Ba2 corporate family rating, Ba2-PD probability of default rating and Ba2 senior unsecured rating on review for downgrade.

The action follows the announcement that SDH, the Slovenian sovereign holding company which is coordinating the sale of Telekom Slovenije, rejected the additional conditions made by financial sponsor Cinven in its binding bid dated June 9, although it accepted the binding bid dated May 20.

SDH said it was still prepared to complete the transaction without those conditions, while Cinven said that it remains interested in the privatization of Telekom Slovenije and is open to re-evaluate the situation. The final decision will be known in the coming weeks.

"The rejection of the adjusted bid represents a further delay in the sale process of Telekom Slovenije, while in our view, on a stand-alone basis, the company retains a weak liquidity profile," Iván Palacios, Moody's vice president, senior credit officer and lead analyst for Telekom Slovenije, said in a news release.

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