Fitch affirms Vodafone

Fitch Ratings said it affirmed Vodafone Group plc's long-term issuer default rating and senior unsecured ratings at A- and short-term issuer default rating at F2, but changed the outlook on the issuer default rating to negative from stable.

The outlook change reflects concerns that Vodafone's operational performance and cash flow generation will be negatively impacted by continuing recessionary conditions and rising competition in its major markets, Fitch said, as well as at its growing Indian operation.

Fitch noted that Vodafone's business in Turkey may take longer than initially expected to turn around.

While the company's rating is able to tolerate a short-term spike in leverage at the current rating level, the outlook change also reflects the reduced headroom the group has at the A- level, the agency 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.