Tuesday August 21, 3:00 pm Eastern Time
Moody's cuts cable group NTL, affects $20 bln debt
NEW YORK, Aug 21 (Reuters) - The credit and debt ratings of NTL Inc. (NYSE:NLI - news), Britain's largest cable operator, and related entities were downgraded on Tuesday by Moody's Investors Service, which fretted over the company's ``significant'' debt load and ``heightened liquidity concerns'' as it expands.
--------------------------------------------------------------------------------
NTL, which is based in New York and Hook, England, has more than $20 billion of debt and preferred stock, Moody's said.
Moody's cut NTL's senior implied and senior unsecured issuer ratings to ``B1'' and ``Caa1,'' and NTL Communications Inc.'s senior unsecured and convertible subordinated debt to ``B3'' and ``Caa1.'' All of the downgrades were one notch. ``B1'' is Moody's fourth highest junk grade, ``B3'' its sixth highest, and ``Caa1'' its seventh highest. Moody's outlook is negative.
Moody's said NTL faces ``substantial challenges'' to boost revenue and cut costs enough to pay interest on debt ``over the next several years.'' As of June 30, NTL's long-term debt totalled $16.4 billion, and interest expenses accounted for 37 percent of revenues, Moody's said.
NTL is reportedly involved in debt restructuring talks with J.P. Morgan Chase & Co. (NYSE:JPM - news). It said last month it will shed at least 2,000 jobs next year. NTL shares traded late Tuesday on the New York Stock Exchange at $6.49, down 21 cents. They have fallen 73 percent this year, from $23.94. |
