Moody's: Hellas view negative

Moody's Investors Service said it changed the outlook on the ratings of Hellas Telecommunications II to negative from stable following the company's public disclosure regarding the expected development and performance during 2008 of its recent acquisitions of Tellas.

Following the acquisition announcement, Moody's said the acquisition was expected to be neutral to the company's credit profile at that time, reflecting certain assumptions based on discussion with the company regarding future operating performance and capital expenditure levels.

According to the agency, Hellas disclosed certain revised expectations, including a more significant EBITDA loss for Tellas in 2008. As a result, Wind Hellas is likely to be free cash flow negative this year, Moody's noted. The company also has yet to refinance €80 million of Tellas debt, which limits available liquidity under the existing revolving credit facility.

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