Moody's on Tuesday downgraded Hellenic Telecommuni-ations Organisation's (OTE) long-term issuer rating by on notch to Baa3 from Baa2, wile keeping OTE's ratings on review for possible further downgrade.

The rating action was triggered by Moody's recent downgrade to B1 from Ba1 of Greece, Moody's senior vice president and lead analyst for OTE Carlos Winzer said, adding that "this resulted, amongst other things, from a rapid deteriorating in consumer spending in Greece and increasing concerns regarding the macroeconomic environment in the country, with its GDP expected to decline this year by 3.0 percent", following a 4.5 percent decline in 2010, which will "continue to affect OTE's performance in the medium term".