S&P upgrades WIND Hellas

Standard & Poor's said it raised its long-term corporate credit ratings on WIND Hellas Telecommunications SA to CCC+ from selective default (SD), along with its CCC+ rating from CC on its $1.22 billion senior secured notes due 2012 issued by its wholly owned financial subsidiary Hellas Telecommunications (Luxembourg) V. The recovery rating is unchanged at 3, indicating an expectation of 50% to 70% recovery in the event of default.

The agency also said it raised to CCC- from C its issuer rating on subsidiary Hellas Telecommunications (Luxembourg) III's $355 million senior unsecured notes due 2013. The recovery rating is unchanged at 6, indicating an expectation of 0% to 10% recovery in the event of default.

The upgrade reflects the company's emergence out of U.K. insolvency proceedings, S&P said, as well as its improved liquidity following completion of its capital restructuring.

The ensuing junior debt write-off is likely to nearly halve the group's interest payments, despite the higher margin that the company consented to senior lenders, the agency said, and enable the group to generate positive free cash flow in 2010.

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