NTL says it can pay its debts <BR>after double blow from City

LONDON - NTL said it was fully able to meet all of its payments, following a double header of negative comments from City institutions, which sent the struggling cable operator's share price spiralling downwards.

In a statement issued to shore up investor confidence, NTL reiterated that it was "fully able to meet all of its current trade obligations and interest payments".



Yesterday, Standard & Poor's cut NTL's long-term corporate credit ratings to B- from B+ and its bonds to CCC from B-. It also changed its outlook on the company to "negative" from "stable".



In addition, Goldman Sachs's European high-yield credit and distressed credit research team said it expect NTL to restructure its £12bn debt "sometime in early 2002".



NTL's shares fell as much as 20% to $0.69 on the New York Stock Exchange yesterday -- today, it was down 26.4% to $0.64.



"NTL notes with disappointment the action taken by Standard & Poor's and the published opinions of Goldman Sachs," the statement said.



It added that the recently announced cost-reduction programme within its UK operations is an "output from a revised business plan".



If you have an opinion on this or any other issue raised on Brand

Republic, join the debate in the .



Topics

Claire Billings, recommends

NTL

Read more