According to a new report, Telekom rating in Austria has been downgraded by Moody's. Moody's has done this after its current financial debt caused by the increase of the mobile spectrum in an auction in Austria.

The rating agency believes the EUR 1 B acquisition will put negative effect on the financial terms of the Company.

Carlos Winzer, a Moody's Senior Vice-President and lead analyst for Telekom Austria, said: "We are downgrading Telekom Austria's ratings mainly because its recent debt-financed acquisition of mobile spectrum will have a negative impact on the group's credit metrics".

He said Telekom Austria's mobile business will offer more benefit to the company by its additional spectrum. But the debt-financed nature of the acquisition raises the financial risk of the company, which will be beyond the level of tolerance for the previous rating.

Hannes Ametsreiter, CEO of the Telekom Austria Group, said currently Bulgaria is suffering with the most difficult market within the Telekom Austria Group.

Hannes declared Thanasis Katsiroubas as the most excellent expert in the Bulgarian market. He was also titled as the most experienced telecom top managers within the Group, who is capable of performing the challenging task.