KPN results raise threat of credit downgrading

Debt laden telco struggling to keep its head above water...

Debt laden telco struggling to keep its head above water...

Dutch telco KPN has announced losses of E1.038bn (£645m) for the first half of 2001. The ailing telco outperformed analysts' predictions but the markets still reacted unfavourably - with KPN's share price falling 20 per cent to an all time low, before recovering slightly to E2.95 (£1.83). KPN is currently struggling with massive debts of E22.8bn (£14.1bn) and is facing the likelihood of its credit rating being downgraded. A proposed merger with Belgacom which would have eased KPN's debt problems fell through last week.