Moody's cuts Bezeq view to negative

Moody's Investors Service said it changed the outlook on the A3 long-term senior unsecured bond and bank loan ratings of Bezeq, The Israel Telecommunication Corp. Ltd., to negative from stable.

Moody's said the outlook change reflects the uncertainties resulting from the potential further partial privatization of the company and the possibility that a new controlling consortium may change Bezeq's financial strategy.

Moody's stated that, although Bezeq's current underlying business and financial profiles are robust for the rating category, there is significant uncertainty as regards the likely impact in the event that a new controlling consortium might aim to maximize its financial return in the short term. However, within this framework, Moody's understands that certain restrictions imposed by the government, regulations and the labor unions in Israel may limit, to an extent, any potential change in the company's financial profile.

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