COPENHAGEN, Denmark, March 19, 2002 (PRIMEZONE) -- TDC's (NYSE:TLD) credit rating has been changed by Standard & Poor's and has been placed on review by Moody's.
Standard & Poor's has changed TDC's long-term rating from A to A- with a stable outlook and the short-term rating from A-1 to A-2. Standard & Poor's says that the ratings action reflects their concerns about the ability of TDC to improve its credit measures in the near term and, in part, reflects a re-assessment of TDC's growth prospects.
Standard & Poor's further says that the ratings on TDC benefit from the company's leading position in the Danish mobile and fixed-line telephony markets, and strong competitive position, thanks to its control of the access network and large-scale advantages. The ratings are constrained by TDC's heightened business and financial risk following its investments in Switzerland.
Standard & Poor's believes that leverage will increase as a result of the assumed acquisition of minority shareholdings in TDC Switzerland, yet credit protection measures are expected to remain acceptable. The ratings do not assume any further credit-dilutive acquisitions. TDC should maintain its ratings as long as the company continues to grow earnings and cash flow, thereby improving its debt capacity.
Moody's says their review will assess to what extent the execution of TDC's strategy of growth going forward will put additional pressure on the company's financial risk profile. Moody's notes the strength of TDC's management and its track record in operations, but also expects shareholders to continue expecting growth and value creation.
Moody's also says the review is not expected to result in a change of more than one notch to an A3 long-term rating and a P2 short-term rating.
"The important thing for us is that we have an A-rating. A change is not expected to affect our financial costs significantly," says Hans Munk Nielsen, CFO of TDC.
For further information please contact TDC Investor Relations at +45 3343 7680.
TDC, formerly Tele Danmark, is a Danish-based European full-service provider of communications solutions. It is organized in seven main business lines; TDC Tele Danmark, TDC Mobile International, TDC Internet, TDC Switzerland, TDC Cable TV, TDC Services and TDC Directories. TDC is the leading provider of communications services in Denmark, the second-largest communications provider in Switzerland and holds significant interests in a range of communications companies across Northern and Continental Europe. TDC was privatized in 1994. Today, SBC Communications owns a 41.6% stake in TDC and the remaining shares are held by individual and institutional shareowners all over the world.