S&P cuts Polska Telefonia view to negative

Standard & Poor's said it revised its outlook on Poland-based Polska Telefonia Cyfrowa Sp. z o.o. to negative from stable and affirmed its BBB- long-term corporate credit rating on the company.

The outlook revision reflects S&P's view that recent events - including intense legal disputes over shareholdings in the company, leading to the replacement of certain members of the senior management team - might create unforeseen operational issues and financial implications for the company, leading to a credit profile that would not be compatible with an investment-grade rating.

In particular, S&P noted that three of the five directors in the company's management board are representatives of Elektrim SA, one of the main shareholders and a distressed company.

S&P said it highlights, however, that Polska Telefonia's credit profile continues to benefit from the company's strategic and financial flexibility, which has so far enabled the company to maintain its leading mobile-telephony market position in Poland, in terms of both market value and subscribers.

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