Moody’s gives B1 to eircom loan

Moody's Investors Service said it assigned a B1 rating with a loss given default assessment of 3 (LGD3) to the new term loan B due 2024 raised by eircom Finco Sarl, a wholly owned subsidiary of telecommunications company eircom Holdings (Ireland) Ltd. (eir).

All other ratings remain unchanged, including the B1 corporate family rating and B1-PD probability of default rating of eir and the existing instrument ratings of its subsidiaries.

The outlook is stable.

eir is refinancing its existing €1,611,000,000 term loan B5 with a new term loan B. This refinancing exercise is credit positive and improves eir's financial flexibility due to a reduction in interest costs, an extension of the debt maturities by two years to 2024 and a shift to a covenant-lite structure, the agency explained.

Nevertheless, Moody’s said the refinancing exercise is leverage neutral and does not have an impact on eir's B1 ratings or stable outlook.

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