It is reported that credit ratings agency, Moody’s, has downgraded ERC Ireland Finance’s debt from “Caa1” to “Caa2”, reporting that the outlook on the company’s ratings was negative.

Eircom’s parent company, ERC has also reportedly acknowledged that its financial covenants are likely to be breached in the short term. However, the company’s chief financial officer, Mark Wilson, stated that he was optimistic about the company’s ability to resolve its debt situation. Separately, it has been reported that Singapore Technologies Telemedia (STT) is prepared to invest further in Eircom, following talks with Eircom management.

Contributed by Brendan Cahill.