Moody's turns PPF view to negative

Moody's Investors Service said it changed the outlook for PPF Telecom Group BV, Cetin Group NV, Cetin Finance BV and Cetin as to negative from stable.

Concurrently, the agency affirmed the Ba1 backed senior secured ratings of PPF Telecom, the Baa2 long term issuer ratings of Cetin Group, the Baa2 backed senior unsecured ratings of its guaranteed subsidiary Cetin Finance and the Baa2 long term issuer rating of Cetin as.

The rating action follows GIC completing its purchase of a 30% stake in Cetin Group, the agency said. Cetin will use the proceeds to repay €325 million of debt at O2 Czech Republic, as while the balance will be distributed to shareholders.

"The outlook change to negative reflects the dilution of PPF Telecom's ownership of Cetin, which is a strategic asset, and the use of a large part of the cash proceeds to remunerate shareholders, weakening the financial strength of the group," said Carlos Winzer, a Moody's senior vice president and lead analyst for PPF Telecom, Cetin Group and Cetin as, in a press release.

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