S&P cuts Damovo view to negative

Standard & Poor's said it revised its outlook on Damovo Group SA to negative from stable. At the same time, the B long-term corporate credit rating on Damovo was affirmed.

S&P also said it affirmed its CCC+ long-term rating, two notches below the corporate credit rating, and 4 recovery rating on subsidiary Damovo III SA's €350 million ($421 million) senior secured notes.

The outlook revision reflects Damovo's high financial leverage and S&P's concerns about the group's recent operating and cash flow performance, which leave it significantly exposed to shortfall in its second-half 2005 results, S&P said.

The ratings continue to reflect the group's limited size and diversification in the competitive information and communication technology market, aggressive leverage and adequate liquidity, S&P said.

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