S&P ups Comstar

Standard & Poor's said it raised the long-term corporate credit ratings on Comstar United TeleSystems (JSC) and its majority-owned subsidiary Moscow City Telephone Network (JSC) to BB from BB-. The ruAA Russia national scale ratings were affirmed.

The outlook is stable.

S&P said the action follows the upgrade on parent company Sistema (JSFC) (BB/stable), which controls Comstar's strategy and financial policy through a 51% ownership interest.

Ratings are constrained by the parent's aggressive financial risk profile, as well as by Comstar's own ambitious growth strategy and uncertainties related to the regulation of the industry, in particular doubts about the mooted privatization of national telecoms holding company OJSC Svyazinvest, the agency said.

Ratings are supported by Comstar's strong position in Moscow's fixed-line market, the company's expanding corporate-services segment, its favorable financial and operating performance and synergetic integration within its operating subsidiaries and with Sistema's various telecoms assets, S&P noted.

The agency said it expects the company's debt to stay within 1.5 times to 2 times EBITDA over the near term.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.