Moody's cuts Orascom outlook to negative

Moody's Investors Service said it has changed the outlooks of Orascom Telecom Holding SAE and its subsidiary, Orascom Telecom Finance SCA, to negative from stable.

The agency said that the ratings affected are as follows: corporate family rate at Ba3 and $750 million senior notes at B2.

According to the agency, the change in the outlook reflects concerns over the fact that financial flexibility in the company's ratings has been reduced over the course of 2008.

Having received significant proceeds from the sale of its subsidiary in Iraq and the disposal of its remaining stake in HTIL, Orascom Telecom has subsequently redeployed the funds to repurchase its own shares, to acquire frequency spectrum in Canada (and to finance its joint venture in North Korea, Moody's said.

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