Moody's ends review, lifts Tele Columbus

Moody's Ratings said it ended its review for upgrade started on March 22 of Tele Columbus AG and upgraded the long-term corporate family rating to Caa1 from Caa3 and its probability of default rating to Caa1-PD from Caa3-PD. Concurrently, the agency assigned a Caa1 instrument rating to the backed senior secured notes and a Caa1 instrument rating to the senior secured term loan B issued by the company. The outlook is negative.

"The rating upgrade is mainly driven by Tele Columbus' improved liquidity following the refinancing of the company's capital structure and the new funding contribution committed by its main shareholder," said Agustin Alberti, a Moody's vice president, senior analyst and lead analyst for Tele Columbus, in a press release.

"However, the rating remains constrained by the company's still high leverage levels as well as by the high execution risks related to its turnaround plan," Alberti added.

The negative outlook reflects a forecast for weak liquidity over the next 12-18 months due to substantial investment plan needs at a time of uncertainty around the company's ability to rebuild earnings growth, the agency said.

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