Moody's upgrades Cellco

Moody's Investors Service upgraded Cellco Finance NV, the financing vehicle of Turkcell Iletisim Hizmetleri AS. The outlook is stable. Ratings affected include Cellco's $400 million 12.75% senior notes due 2005 and $300 million 15% senior subordinated notes due 2005, both raised to B3 from Caa2.

Moody's said the upgrade reflects Turkcell's strengthening operating performance and metrics since the company's ratings were lowered in July 2001 and its improving operating cash flow and alternate liquidity position to service debt obligations.

The ratings also reflect Turkcell's strong market leadership position in the Turkish mobile market, improving subscriber growth and expectation that minutes of use and ARPU should continue to benefit from improved economic circumstances, Moody's said.

However the rating agency cautioned that signs of economic improvement in Turkey remain tentative and that Turkcell's operating profile remains exposed to downside risk from political uncertainty and sudden volatility in foreign exchange movements.

Moody's raises Hyundai outlook

Moody's Investors Service raised its outlook on Hyundai Motor Co. to positive from stable and confirmed its senior debt at Ba2.

Moody's said it raised Hyundai's outlook in response to the company's improving performance in the Korean and U.S. automobile markets and the progress in improving its financial leverage and liquidity.

Hyundai has made considerable progress in several important financial and operational areas, increasing market share and unit sales (despite the industry downturn in the U.S.) and reducing its cost structure, Moody's said.

It has introduced attractive new models and continues to solidify its position as the dominant player in the Korean automotive market, Moody's added.

Hyundai has also built up $2.9 billion of cash, the rating agency noted.

However Hyundai has a high dependence on exports, which make earnings and cash flow very sensitive to changes in exchange rates, Moody's said. The recent decision to construct a facility to produce 235,000 vehicles per year in Alabama (for completion in 2005) will have additional financial and operational risks for the company.

Moody's rates Gazinvest notes Ba3

Moody's Investors Service assigned a Ba3 rating to the upcoming issue of €200 million five-year senior unsecured notes by Gazinvest Finance BV. The outlook is positive.

The notes will be unconditionally and irrevocably guaranteed by the Joint-Stock Bank of the Gas Industry (Gazprombank).

Moody's said the rating takes into account the important role Gazprombank is playing in the strategy of its parent OAO Gazprom. The businesses of the two entities are closely linked and are likely to remain so in the future despite Gazprombank's recent initiatives to somewhat diversify its customer base.

S&P lowers AES Gener

Standard & Poor's downgraded AES Gener SA and kept it on CreditWatch with negative implications.

Ratings lowered include AES Gener's $200 million 6.5% notes due 2006 and $82.5 million 6% convertible debentures due 2005, both cut to BB from BBB-.

Fitch raises Cabeurope, ONO outlook

Fitch Ratings raised its outlook on Cableuropa SA and for ONO Finance plc to positive from stable and confirmed their ratings including Cableurope's senior unsecured debt at B-, its €800 million senior secured bank facility at B+ and ONO Finance's senior unsecured notes at B-.

Fitch said the ratings reflect the company's solid performance to date in the execution of its business plan and in particular the achievements made in network build and residential customer penetration, both of which have exhibited strong momentum since commercial operations were launched in 1998.

With residential penetration in mature network nodes exceeding 40%, and current sell-in penetration (penetration achieved within a month of marketing) in the 15-25% range, the company has established a credible service proposition and level of customer acceptance, Fitch said.

Overall residential penetration of 30.7% (at end March 2002) and first quarter ARPUs (Average Revenue Per User) of €47.5 are solid achievements given the relative nascence of the business and the cable industry generally in Spain, Fitch said.

Fitch also acknowledges the company's strong brand name (recognition is 100%), the quality and capacity of its digital-ready bi-directional network, and its strong shareholder base, which includes GE Capital, Banco Santander Central Hispano (a leading Spanish bank) and Ferrovial (a major Spanish construction company).

Shareholder support was underlined in the first quarter when a further €300 million of equity was injected into the business in the absence of an IPO, bringing total contributions to €850 million, Fitch noted.

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