Fitch downgrades OTE

Fitch Ratings said it downgraded Hellenic Telecommunications Organization SA's (OTE) long-term foreign-currency issuer default rating and OTE plc's senior unsecured ratings to B- from BB.

The ratings remain on Rating Watch negative.

The downgrade of OTE's rating follows the downgrade of the Greek sovereign rating to CCC from B- and the assignment of a revised country ceiling of B- for Greece, according to the agency.

The previous rating of BB balanced the potential support from 40% shareholder Deutsche Telekom AG (BBB+/stable) and OTE's weaker standalone profile as adversely affected by its near-term refinance risks whereas its operational performance was relatively solid, the agency noted.

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