COPENHAGEN, Denmark, Feb. 19, 2001 (PRIMEZONE) -- Moody's Investor Service gave TDC Group (NYSE:TLD) a long-term credit rating of A2 with a stable outlook.
Moody's notes in their review that the acquisition of both sunrise/diAx, in which TDC owns and controls 78.5%, creates the second largest telecommunications provider in Switzerland with an estimated market share of 22% in landline, 15% in mobile and 36% in Internet.
The rating agency has factored in the relatively low cost of sunrise's UMTS license as well as potential cost-saving synergies of the merger.
The rating agency also factored in the significant financial flexibility of TDC's other investments as well as the expectation that a Danish UMTS license, due later this year, will not cause any significant financial burden to TDC.
On this background, Moody's changed the long-term credit rating from Aa3 to A2 and with stable outlook.
The short-term credit rating was unchanged at P1.
"Moody's rating reflects our comparable strong creditworthiness and our stable outlook, and therefore we are satisfied with the outcome of the review," says Hans Munk Nielsen, Chief Financial Officer of TDC Group.
TDC, formerly known as Tele Danmark, is a Danish-based European communication solutions provider organized as five main business units; Tele Danmark, TDC Mobile International A/S, TDC Internet A/S, TDC Cable TV A/S and TDC Directories A/S. TDC is the principal provider of communications services in Denmark and holds significant interests in a range of communications companies across Northern and Continental Europe. TDC was privatized in 1994. Today SBC Communications owns 41.6% of the shares and the remainder are held by individual and institutional shareowners all over the world.
TLD Listings Shares: Copenhagen Stock Exchange. Reuters TLD.CO. Bloomberg TLD.DC. Nominal value DKK 5. ISIN DK00-1020242-3. SEDOL 4889874. ADRs: New York Stock Exchange One ADR represents half of one ordinary share Reuters TLD.N. Bloomberg TLD US. SEC 1-12998. Half of one ordinary share. CUSIP 879242105. SEDOL 2883094.