...This criteria report illustrates important characteristics taken into account when rating European telecommunications companies. To date, the majority of their senior unsecured ratings have been within Fitch Ratings A and BBB rat ing range. In a few instances, European telecoms have been the subject of LBOs, where the resultant leverage multiples and reduced financial flexibility have resulted in ratings in the category of BB and below. Cable TV companies have evolved from project finance roots as well as a process of consolidation, and also tend to be more highly leveraged as a result. Ratings for t his sub\##sector are predominantly BB+ and below. Incumbent operators, with their own large scale and geographically diverse fixed and mobile networks, as well as significant emerging market\##controlled subsidiaries, tend to be rated a t the top end of the A t o BBB ran ge, assuming modest leverage. Operators with smaller...
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