Moody's upgrades TDC notes

Moody's Investors Service said it affirmed the B1 corporate family rating and B1-PD probability of default rating of DKT Holdings ApS, the indirect parent of Danish telecom operator TDC A/S.

Moody's also said it affirmed the Ba3 ratings on the term loan B and revolving credit facility raised by TDC.

The agency also affirmed the B3 ratings on the senior secured notes issued by DKT Finance ApS, which is a subsidiary of DKT and indirect parent company of TDC.

Moody's also said it upgraded the rating on TDC's senior unsecured notes to Ba3 from B1 and aligned them with the ratings on TDC's term loan B and revolving credit facility.

The outlook is stable.

The actions follow news that TDC plans to use a substantial part of the cash proceeds from the completed sale of its Norwegian business Get AS to Telia Co. AB to partially prepay at par its term loan B under TDC's senior secured credit facilities, the agency explained.

The ratings reflect the combination of the group's strong business profile and expectation of improved operating performance, Moody's said, offset by the impact on the group's credit metrics from the substantial debt incurred to finance the buyout.

The ratings also consider the strength of TDC's market position in Denmark, as demonstrated by a 63% market share in landline telephony, 51% in broadband, 56% in TV and 41% in mobile voice services, the agency said.

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