Fitch assigns BBB to Cetin notes

Fitch Ratings said it affirmed Ceska telekomunikacni infrastruktura a.s.' (Cetin) long-term issuer default rating at BBB.

The outlook is stable.

The agency also assigned a senior unsecured rating of BBB to Cetin and an expected rating of BBB(EXP) to the prospective issue of notes by subsidiary, Cetin Finance BV under its euro medium-term note program.

Cetin Finance intends to issue two tranches of notes, denominated in euros and Czech krona. The two tranches are collectively expected to be of benchmark size with a short- to intermediate-tenor. The notes represent senior unsecured obligations and are guaranteed by Cetin. The bond documentation includes provisions for negative pledge and cross default of Cetin and its material subsidiaries.

Proceeds will be mainly used for general corporate purposes and to refinance existing syndicated loan facilities of 27.7 billion in Czech krona.

Fitch said the rating reflects the ownership of core national network infrastructure in the Czech Republic, long-term contracts that reduce operating risks and drive improved visibility and stability of cash flows, strong cash generating capability and a measured financial policy that is supported by a flexible shareholder remuneration policy.

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