10th Feb 2020 17:45
(Alliance News) - Moody's Investors Service on Monday assigned a Ba1 rating to BT Group PLC's proposed EUR500 million capital securities issue.
Moody's gave the issue, due 2080, a negative outlook. The Ba1 rating is two lower than BT's Baa2 senior unsecured and issuer ratings.
"This reflects the deeply subordinated position of the proposed hybrid securities in relation to the existing senior unsecured obligations of BT," Moody's noted.
The credit ratings agency explained that the negative outlook is a reflection of the "continued pressure on BT's top line", which Moody's added will persist over the next two years and could lead to a marginal fall in earnings before interest, taxes, depreciation, and amortisation.
The outlook could be boosted should BT deliver cost savings and an improved Ebitda.
Shares in the company closed 0.5% lower at 154.14 pence each in London on Monday.
By Eric Cunha; [email protected]
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