The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Number crunchers turn positive on telecoms


Deutsche Telekom's slow progress in selling
assets has worried the ratings agencies

Should credit investors be starting to look favourably at European telecom bonds despite the volatility of the market?

Immediate indications suggest not. There are still credit concerns about France Telecom's contingent liabilities and at Deutsche Telekom deleveraging is making slow progress. Vodafone faces questions about whether goodwill from acquisitions is overstated on its balance sheet.

Technical factors are also worrying investors. The frantic hedging efforts of bank lenders committing themselves to France Telecom's e15 billion ($13 billion) syndicated refinancing facility last month blew out the company's spreads in the credit default swap market, spooking bondholders.

Some analysts take all this on board but are fundamentally optimistic.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree