Fitch assigns TDC NET BB

Fitch Ratings said it assigned TDC NET A/S a first-time long-term issuer default rating of BB with a stable outlook. Fitch also assigned TDC NET's new EMTN program for senior secured notes, an instrument rating of BBB- with an RR2 recovery rating.

Concurrently, the agency upgraded TDC Holding A/S' outstanding senior unsecured EMTNs to BBB-/RR2 from BB+/RR1 and removed from rating watch evolving as it now treats them equally with TDC NET's new senior secured debt.

Fitch noted the company benefits from its leading position within the Danish telecoms infrastructure market but is constrained by high leverage.

“We expect TDC NET to exhibit strong sustainability of leverage, due to embedded structural protection for the creditors, which prevents TDC NET from increasing leverage should performance deteriorate,” Fitch said in a press release.

The agency kept the rating watch negative on TDC NET's ultimate parent DKT Holdings ApS and RWE on DKT Finance ApS' senior notes.

“We expect to resolve the watches once we have more clarity on the group's capital structure and plans on the amount and type of debt at financing vehicle DKT Finance and services subsidiary, Nuuday,” Fitch said.

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