LONDON-Moody’s Investors Service changed its rating outlook of Sonera from stable to negative. Sonera follows several other European operators in being downgraded for their high debt.
Moody’s said the change in rating outlook reflects its increasing concern regarding the uncertainty surrounding Sonera’s ability to reduce its increased debt in the medium term. It said the Finnish carrier has increased its debt substantially from about US$840.5 million to US$4.2 billion during the last few months, mainly as a result of its 43-percent equity stake in the German consortium that won a third-generation (3G) license.
Sonera this week also was part of a consortium that won a 3G license in Italy.
