Moody's: Versatel outlook negative

Moody's Investors Service said it changed the outlook on Versatel AG's B1 corporate family rating and B2 €525 million senior secured floating-rate notes due 20140 to negative from stable, reflecting uncertainty due to the resignation of Brian Cook, the company's chief financial officer, without a replacement having yet been identified.

On Thursday, Versatel announced that it will reorganize its executive board, including the departure of the company's CFO and the appointment of a new executive officer responsible for customer care, business processes and IT. The company also announced that it began a program to improve efficiency, with the objective to improve EBITDA margins to levels above 30% within the next three years.

Moody's said that although it derives comfort from the company's reiterated guidance for year-end 2007, the agency is concerned about the lack of visibility beyond year-end 2007 given the ongoing pricing declines and intensified competition.

© 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.