Eircom group debt faces downgrade

London: Debt issued by Eircom Group’s parent companies faces down- grade if the borrowers fail to relieve pressure on loan conditions, said Standard & Poor’s said.

S&P revised its outlook to negative from stable and said it may downgrade the debt as the risk increases that Ireland’s largest telephone company will breach loan covenants in September or December 2011. Eircom owes €3 billion under a facility due in March 2016. ERC Ireland Finance has €350m of floating-rate notes outstanding.