Moody's confirms Orascom Telecom

Moody's Investors Service said it confirmed the B2 corporate family rating of Orascom Telecom Holding SAE and the Caa1 rating of the $750 million senior notes due 2014 issued by Orascom Telecom Finance SCA.

The outlook is negative.

The action concludes a review for possible downgrade that began in November following news that Orascom Telecom's subsidiary, Orascom Telecom Algeria, received official notification about the $596.6 million in taxes that it owes.

The confirmation reflects the successful completion of the $800 million rights issue, Moody's said, and this should address the immediate negative impact of the tax claim in Algeria.

The negative outlook also factors in the challenging operating and regulatory environment in Algeria, the agency said, and its impact on Orascom's business and financial risk profile in the medium term.

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