Fitch reviews eircom, trims debt

Fitch Ratings said it affirmed eircom Holdings (Ireland) Ltd.'s long-term issuer default rating at B+ with a stable outlook, and placed the existing senior secured rating on rating watch negative.

The rating watch reflects eircom's recent announcement to upsize the debt and dividend payment as part of its refinancing, weakening recovery prospects, Fitch said.

Fitch also downgraded the expected rating on eircom's planned €950 million debt issue, comprising both loans and notes, due in 2026, by one notch to BB- from BB.

After the transaction, the senior secured rating will be aligned with the expected BB- rating, reflecting the pari passu ranking of the new loans and notes with all present and future senior secured obligations, Fitch said.

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