June 12 (Reuters) - S&P Global Ratings on Tuesday cut its credit rating on BT Group, citing strict oversight by British telecom regulator of its broadband networks.
BT’s Openreach network has come under the scrutiny of Ofcom, which said in March it would cap the amount the network can charge rivals to use its entry-level superfast broadband service.
The downgrade to 'BBB' from 'BBB+' was also due to increased competition in the consumer broadband market and Brexit-related uncertainties, S&P said in a statement. It, however, kept a stable outlook. (bit.ly/2l6qJfn)
BT said last week Chief Executive Gavin Patterson would step down, a month after laying off 13,000 workers, as the company attempts to tackle a host of problems including intense competition, an underperforming IT services unit, and criticism of its broadband plans. (Reporting by Shashwat Awasthi in Bengaluru; Editing by Anil D’Silva)