Moody's cuts Antenna TV outlook to negative

Moody's Investors Service said it changed to negative from stable the outlook on Antenna TV SA's B1 corporate family rating and B1 €120 million 7¼% senior unsecured notes due 2015.

The agency said the outlook change reflects the difficult operating environment that the company is facing in its core TV operations in Greece, which is characterized by declining audience shares due to the emergence of new competitors, pricing pressures and low profitability. Antenna TV's audience share for the first nine months of 2006 declined to 17.9% from 20% in the same period of 2005, and consolidated EBITD declined by 35% to €12.3 million from €18.9 million over the same period.

However, Moody's positively noted that growth at Nova Television, the group's Bulgarian subsidiary, is to some extent offsetting the weakness in the core TV operations in Greece, and that as a result, credit metrics for the end of 2006 are not expected to change significantly compared with a year earlier.

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