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  • Sonera Corp has added Dresdner Bank and JP Morgan Chase as dealers off its euro500 million ($467.12 million) Euro-CP programme.
  • Market report Compiled by Vusi Mhlanzi, RBC DS Global Markets, London
  • * BOC Group plc Rating: A2/A+/A
  • British Telecommunications this week demonstrated overwhelmingly that the euro market is well on its way to rivalling the dollar market in terms of size and liquidity by absorbing Eu8bn of the UK telcos’ debt in various maturities. The overall size of the transaction was boosted to Eu9.7bn equivalent by £1.1bn raised in the sterling market in two tranches — a £400m five year and a £700m 15 year. The original intention had been to raise Eu5bn equivalent in the two markets.
  • British Telecommunications this week demonstrated overwhelmingly that the euro market is well on its way to rivalling the dollar market in terms of size and liquidity by absorbing Eu8bn of the UK telcos’ debt in various maturities. The overall size of the transaction was boosted to Eu9.7bn equivalent by £1.1bn raised in the sterling market in two tranches — a £400m five year and a £700m 15 year. The original intention had been to raise Eu5bn equivalent in the two markets.
  • The best performer on France's Second Marché, Pinguely-Haulotte, the European leader of boom and platform trucks for lifting material, is shaping up to tap the market with a Eu80m capital increase. Crédit Agricole Indosuez and Deutsche Bank will lead the 10% capital increase along with HSBC-CCF, which will act as co-lead manager.
  • * Carrefour SA Rating: Aa3/AA-
  • * General Electric Capital Corp Rating: Aaa/AAA/AAA
  • Kingdom of Belgium launched its Eu5bn 10 year benchmark OLO on Monday via lead managers ABN Amro, Fortis and Goldman Sachs. The book closed with the deal four to five times oversubscribed. On the back of strong demand, the paper tightened slightly from initial spread talk in the low 40s over Bunds to 40bp at launch, which syndicate managers saw as an attractive level for the sovereign.
  • The ceasefire between the rating agencies and the high grade telecoms sector was broken this week, with Standard and Poor's (S&P) downgrading Dutch telco Royal KPN's A- rating to BBB+ on Monday, and slashing the ratings of Norway's Telenor to A from AA the day after. Moody's was also in action, announcing that it has put Portugal Telecom's A2 ratings on review for a possible downgrade. Credit analysts said Moody's is set to follow S&P's lead and downgrade Royal KPN in the near future.