Moody's cuts Hellenic, OTE

Moody's Investors Service said it downgraded to B1 from Ba1 the corporate family rating of Hellenic Telecommunications Organisation SA following further domestic macroeconomic deterioration in Greece and expectations of weaker operating performance for the company.

Moody's also said it downgraded to B1 from Ba1 the senior unsecured ratings on the global medium-term notes and global bonds issued by OTE plc, along with its probability of default rating.

All of the long-term ratings have a negative outlook and the short-term debt ratings remain not-prime.

The downgrades conclude a review process that began in May.

The key factors behind the downgrade include further macroeconomic deterioration, which triggered the recent downgrade of Greece's government bond ratings to Caa1, Moody's said, and an expectation of weaker operating performance for the company.

Uncertainties and low visibility with regard to the company's future performance highlight the increased business risk, while contraction in domestic consumption will further affect its revenues and cash flow generation, the agency said.

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