Moody's analysts: Two key years ahead for RCS&RDS because of maturing debts

Moody's rating agency has changed the Ba3 rating of telecommunications company RCS & RDS to "negative" from "stable", amid slower revenue increases, more aggressive plans than expected, lower liquidity and economic uncertainties in Romania and Hungary.

"This reflects lower free cash flow generation as a result of lower revenue growth and RCS & RDS' more aggressive investment plan than previously expected by Moody's, the company's weaker liquidity given significant amounts of debt maturities coming due within the next 12-24 months; and uncertainties over the general economic climate in Romania and Hungary, reducing visibility on the company's operating performance going forward," reads an official announcement of the financial rating agency.

The "Ba3" rating is assigned to a company able to meet its financial commitments, but vulnerable to a potential deterioration of the economic climate.

RCS&RDS representatives did not comment Moody's announcement or answer ZF's questions on the issue.