Moody's downgrades Orascom

Moody's Investors Service said it downgraded the corporate family rating of Orascom Telecom Holding SAE to B2 from B1 and the rating of the $750 million senior notes due 2014 issued by Orascom Telecom Finance SCA to Caa1 from B3. Ratings were placed on review for downgrade.

The action was prompted by the company's announcement that its subsidiary Orascom Telecom Algeria has received notification from the Algerian Direction des Grandes Enterprises that it has assessed taxes and penalties of about $596.6 million, according to the agency.

Orascom Telecom said that the assessment is unfounded, and the group intends to take all necessary legal steps to challenge the assessment through all available administrative and judicial channels, the agency said.

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