LONDON-Credit rating agency Moody’s Investors Service Inc. has cut Deutsche Telekom’s credit rating to Baa3, one notch above “junk” status.
The Moody’s rating is less cheerful than two other ratings agencies, Standard and Poor’s and Fitch, both of which rated the carrier two notches higher.
“The rating downgrades reflect Moody’s view that Deutsche Telekom will probably not be able to reduce its net debt to around 50 billion euros ($52.7 billion) by year-end 2003, contrary to previous expectations,” said Moody’s.
DT said it is disappointed by the rating, adding that it hopes to reach its debt target.
