Moody’s could lower OTE

Moody's Investors Service said it placed the Ba3 corporate family rating and the Ba3-PD probability of default rating of Hellenic Telecommunications Organization SA (OTE) on review for downgrade.

Concurrently, the agency placed the provisional Ba3 senior unsecured ratings of the global medium-term note program and the Ba3 rating of the global bonds issued by OTE plc (OTE's fully and unconditionally guaranteed subsidiary) on review for downgrade.

This action follows Moody's decision to place the Government of Greece's Caa1 government bond ratings on review for downgrade.

"While OTE has taken steps to insulate itself from the Greek economy, the company is predominantly a Greek business with approximately 70% of its revenues generated in Greece," Carlos Winzer, Moody's senior vice president and lead analyst for OTE, said in a news release.

"As such, its ratings remain closely linked to conditions in its domestic environment. The government bond rating exerts pressure on OTE’s rating."

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