Moody's eyes Tele Columbus for upgrade

Moody's Ratings said it placed on review for upgrade the Caa3 long-term corporate family rating of Tele Columbus AG as well as its Caa3-PD probability of default rating. Concurrently, Moody's withdrew Tele Columbus' Caa3 backed senior secured notes and its Caa3 senior secured term loan A (TLA). Previously, the outlook was negative.

The review was triggered by Tele-Columbus completing its debt restructuring. Moody’s said it considered the restructuring a distressed exchange. “Nevertheless, this restructuring has allowed the company to establish a more sustainable capital structure and improve its liquidity and debt maturity profile,” Moody’s said in a press release.

As part of the review process, the agency said it plans to evaluate the positive effect on the CFR and PDR of Tele Columbus following the completion of its debt restructuring. The agency will also assign ratings to the newly amended and extended debt instruments upon the conclusion of its review.

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