(Adds Moody's outlook cut, background)
VIENNA/FRANKFURT Jan 14 Telekom Austria is considering several financing tools and will comment on the matter during its capital markets day on Tuesday, Chief Executive Hannes Ametsreiter said on Monday.
One of the options Telekom Austria is considering is a hybrid bond issue of up to 800 million euros ($1.07 billion) to help finance major investments, fund managers said.
Ahead of the capital markets day, credit rating agency Moody's cut its outlook for Telekom Austria's Baa1 senior unsecured and issuer ratings to "negative" from "stable".
"Today's change in outlook reflects our expectation that Telekom Austria's operating performance will remain weak, affected by regulation, fierce competition and the adverse macroeconomic conditions in Austria as well as in other countries in which the group operates," said Moody's analyst Carlos Winzer.
"In addition, the outlook change reflects the group's recent 390 million euro debt-financed acquisition of YESSS! and other assets, together with additional likely funding needs related to the spectrum auction to take place in Austria in the second half of the year."
Telekom Austria warned last week of a further fall in revenue this year, saying tough conditions would continue to weigh on margins as industry consolidation in its cut-throat home market fails to end a price war.
The group - in which Mexican billionaire Carlos Slim built a 26 percent stake last year - put expected 2013 revenue at around 4.1 billion euros, down from the 4.2 billion it has forecast for 2012. It reiterated that it expects to pay a reduced dividend of 0.05 euros per share for 2012 and 2013. ($1 = 0.7493 euros) (Reporting by Angelika Gruber and Harro ten Wolde; editing by John Wallace)