S&P affirms TDC, Nordic Telephone

Standard & Poor's said it affirmed all its ratings on TDC A/S and its parent company Nordic Telephone Co. Holding ApS, including the BB-/B corporate credit ratings on TDC.

The outlook is stable.

This follows the group's proposed request for amendments and repricing of its senior facilities, which, if accepted, would reduce the group's interest payments, the agency said, adding that the proposed amendments would also relax mandatory debt prepayments from the proceeds of asset disposals and from excess cash flows and would increase the possibility of paying dividends out of TDC or repaying subordinated debt at Nordic Telephone.

The affirmation reflects the agency's expectation that the company has sufficient flexibility and instruments at hand to manage the tight debt-amortization schedule starting in the fiscal year 2008, including material free operating cash flow generation, available cash on hand and significant undrawn credit lines, S&P said.

Notwithstanding, the group's leverage is still very high and FOCF generation could suffer somewhat if proposed changes in Danish tax law resulted in higher tax payments, S&P noted.

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