BT Credit Rating Cut

BT has described as 'incomprehensible' the decision by a top debt agency to cut its credit grade, despite significant actions to pay off its considerable debts.

Moody's Investor Services cut BT's credit rating from the top-bracket grade to 'triple-B' rating which will cost BT an extra $50m in interest payments each year. BT executives are at last experiencing a feeling that compares to opening a BT 'phone bill and comparing it to a non BT phone bill.

Moody's also said that BT's plans to demerge its wireless division represented an increased risk to bond-holders.

This decision will reduce BT's ability to borrow on such a large scale in the future and combined with the other recent troubles at BT, gives long suffering customers who do not have the choice of an alternative telecoms provider, reason to gloat over BT's self inflicted misfortune.