Moody’s changes Cetin view

Moody's Investors Service said it changed to negative from stable the outlook on the ratings on Ceská telekomunikacní infrastruktura as (Cetin) and Cetin Finance BV.

The agency also affirmed Cetin's Baa2 issuer rating, as well as Cetin Finance's Baa2 senior unsecured rating and the provisional Baa2 senior unsecured rating on the company's euro medium-term note program.

Moody’s said the action follows the recently closed debt-financed acquisition of Telenor's assets in Hungary, Bulgaria, Serbia and Montenegro by Cetin's 89.73% parent, PPF Arena 1, for €2.8 billion.

PPF Arena 1 has incurred around €3 billion of debt to finance the acquisition and refinance existing debt.

"Changing the outlook to negative reflects Cetin's weakened position resulting from the increase in leverage at its parent to fund the acquisition of Telenor's CEE assets,” Carlos Winzer, Moody's senior vice president and lead analyst for Cetin, said in a news release.

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