Moody’s upgrades OTE, notes

Moody's Investors Service said it upgraded Hellenic Telecommunications Organization SA's (OTE) corporate family rating to B3 from Caa2 and probability of default rating to B3-PD from Caa2-PD.

Concurrently, the agency upgraded the senior unsecured rating of the global medium-term note program to provisional B3 from provisional Caa2 and the rating on the senior unsecured global bonds issued by OTE plc (OTE's fully and unconditionally guaranteed subsidiary) to B3 from Caa2.

The outlook was changed to positive from stable.

Moody’s said the actions follow the improvement of Greece's credit profile as reflected in the June 23 decision to upgrade the Government of Greece's government bond ratings to Caa2 from Caa3 with a positive outlook and to upgrade the country's foreign-currency ceiling to B3 from Caa2.

"OTE continues to strengthen its credit profile but its ratings continue to be constrained by the country's sovereign ceiling, as the company's credit-worthiness will remain closely linked to conditions in its domestic environment," Carlos Winzer, Moody's senior vice president and lead analyst for OTE, said in a news release.

"OTE is performing in line with its business plan and has taken material steps to strengthen its balance sheet, cash flow and liquidity risk management."

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