Moody’s downgrades Vodafone

Moody's Investors Service said it downgraded to Baa1 from A3 the senior unsecured ratings of Vodafone Group plc.

Concurrently, the agency downgraded the company's senior unsecured medium-term notes rating to provisional Baa1 from provisional A3 and the preferred stock shelf ratings to provisional Baa3 from provisional Baa2.

Vodafone's Prime-2 short-term rating was affirmed.

The outlooks are stable. The action concludes the review process that was initiated on June 10.

"The downgrade reflects our expectation that Vodafone's financial metrics will remain weak for the next two to three years. We believe its commitment to a single-A rating has also relaxed, and the potential near-term measures that the company may take to strengthen its financial profile are insufficient to maintain an A3 rating," Iván Palacios, Moody's vice president - senior credit officer and lead analyst for Vodafone, said in a news release.

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