Moody's rating agency has changed the Ba3 rating oftelecommunications company RCS & RDS to "negative" from"stable", amid slower revenue increases, more aggressive plans thanexpected, lower liquidity and economic uncertainties in Romania andHungary.
"This reflects lower free cash flow generation as a result oflower revenue growth and RCS & RDS' more aggressive investmentplan than previously expected by Moody's, the company's weakerliquidity given significant amounts of debt maturities coming duewithin the next 12-24 months; and uncertainties over the generaleconomic climate in Romania and Hungary, reducing visibility on thecompany's operating performance going forward," reads an officialannouncement of the financial rating agency.
The "Ba3" rating is assigned to a company able to meet itsfinancial commitments, but vulnerable to a potential deteriorationof the economic climate.
RCS&RDS representatives did not comment Moody's announcementor answer ZF's questions on the issue.
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