NEW YORK-Moody’s Investors Service placed the long-term debt ratings of Ameritech Corp., Chicago, and the affiliates it supports under review for possible downgrade.
The rating agency announcement, which affects about $2.2 billion in debt and preferred stock, all rated in the investment grade `A’ range, follows Ameritech’s announcement it will invest more than $3 billion in Tele Danmark, Denmark’s largest telecommunications company.
Moody’s, however, also confirmed its similar investment grade short- and long-term debt ratings on Ameritech’s domestic telephone subsidiaries.
Stephen J. Gutkowski, senior vice president, and Alferd J. Pastore, managing director, of Moody’s Telecommunications & Media group, said: “Moody’s review will concentrate on the strategic implications of Ameritech’s decision to expand significantly its presence in the European telecommunications marketplace, the impact on Ameritech’s financial flexibility as the result of its decision to fund this investment with cash and the likelihood that Ameritech may further leverage its balance sheet to take advantage of developing telecommunications opportunities.”
