Moody's cuts Hellas

Moody's Investors Service said it downgraded Weather Finance III's probability-of-default rating to D from Caa3 and corporate family rating to C from Caa3. Moody's also said it downgraded the senior secured notes issued at Hellas Telecommunications (Luxembourg) V to C from Caa3 and the senior unsecured notes issued at Hellas Telecommunications (Luxembourg) III to C from Ca.

The outlook is stable.

The downgrade concludes a review that began in June following news that Wind Hellas would accept acceptance the terms of a standstill agreement by holders of 80.6% of the senior secured floating-rate notes, Moody's said.

The standstill now consists of an agreement between Wind Hellas and its revolving credit facility lenders, hedging banks and senior secured note holders to suspend amortization payments under the revolving credit facility, interest payments to the senior secured note holders and settlement payments under the swap agreements. It follows the company's failure to make various required payments, the agency said.

Moody's said it considers that most of the group's debt has defaulted.

The ratings also reflect a view that the company's recovery is likely to be low given the company's weak and declining market position, the agency said.

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