S&P downgrades Sistema, notes

S&P said it lowered the long-term corporate credit rating on Sistema PJSFC to B+ from BB- and lowered the issue rating on its $500 million senior unsecured notes to B+ from BB-.

At the same time, the agency placed both ratings on CreditWatch with developing implications.

The ratings were originally placed on CreditWatch with negative implications on July 18.

“We believe that Sistema's liquidity may weaken after its announced $110 million dividend payout and without dividend income from its Mobile TeleSystems shares, some of which have been frozen due to a claim from Rosneft,” S&P said in a news release.

“The final amount of the claim will likely depend on a court decision, and the timeline is still uncertain.”

© 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.