We expect VMED O2 UK Ltd. (VMED O2) will generate weaker revenue and adjusted EBITDA in 2024 than previously anticipated, leading to adjusted debt to EBITDA staying above 5x at least for the next two years. We also understand the dividend policy will remain unchanged, with all free cash flow distributed to shareholders, which means that leverage will be higher than VMED O2's stated target of 4x-5x. We therefore lowered our issuer credit rating on VMED O2 to 'B+' from 'BB-'. The stable outlook reflects our expectation of about 5.5x adjusted leverage for VMED O2, along with free operating cash flow (FOCF) to debt (excluding the positive impact of vendor financing) of about 3%-4%. The stable outlook reflects our expectation
