S&P cuts KPN credit rating to BBB; outlook still stable

Standard & Poor's (S&P) has lowered KPN's credit rating to BBB from BBB+. The agency expects KPN's 2012 EBITDA to come in weaker than expected due to intense competition on the home market. In addition, higher pension and operating lease adjustments will result in a more marked and durable debt leverage than previously expected. KPN still has a stable outlook, with S&P confident the company will recover after a likely deterioration this year.