S&P affirms Tim Hellas Telecommunications

Standard & Poor's said it affirmed its B+ long-term corporate credit ratings on Tim Hellas Telecommunications SA.

At the same time, S&P said it affirmed all debt ratings outstanding on related entities Hellas Telecommunications (Luxembourg) V (Hellas V) and Hellas Telecommunications (Luxembourg) III (Hellas III), noting that all the ratings were removed from CreditWatch, where they had been placed with negative implications on April 5.

The outlook is negative.

Furthermore, the €500 million pay-in-kind (PIK) floating rate notes due 2014, issued by Hellas Telecommunications Finance SARL, a fully-owned financial subsidiary of the group's top holding company Hellas Telecommunications I SARL (Hellas I), were rated B-, two notches below the corporate credit rating on Hellas I.

The affirmation, CreditWatch resolution and negative outlook reflect our view that Tim Hellas' unexpected early repayment of the group's €380 million shareholder loans and €120 million PIK notes and their replacement by the €500 million PIK notes, highlights a more aggressive financial policy than previously anticipated, S&P said.

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