Ntl Reassures Investors After Negative Reports

Troubled U.K. cabler NTL moved Thursday to quell investor fears, saying it is "fully able" to meet all its trading obligations and interest payments.

NTL, which has about #12 billion ($17 billion) of debt, issued the statement after receiving two negative comments from financial institutions Wednesday. Rating agency Standard & Poor's downgraded the group's rating from "B-plus" to "B-minus" and changed its outlook from "stable" to "negative." U.S. investment bank Goldman Sachs said it expects NTL to swap its bonds for stock next year.

Britain's biggest cable operator, with 3 million customers, NTL has met its quarterly earnings targets so far this year. There are concerns, however, that in the current economic climate, its debt will prevent NTL from funding expansion and upgrades of its cable network.

The company has made drastic moves to cut costs, recently announcing a further 2,000 staff redundancies (HR 12/11) in addition to the 5,000 job cuts made earlier this year. It also has instituted a pay freeze for managers and a review of all operating and capital expenses.