S&P affirms MobiFon notes at B-

Standard & Poor's said it raised its long-term corporate credit ratings on MobiFon Holdings BV and its parent Telesystem International Wireless Inc. to B+ from B- and affirmed the B- ratings on MobiFon Holdings' $225 million senior unsecured notes due July 2010. The outlook is stable.

S&P said the ratings reflect the completed transaction by Telesystem International whereby MobiFon Holdings increased its ownership interest in MobiFon SA to 79% from 63.5%.

The ratings further reflect the improving credit quality of MobiFon, according to S&P.

"Because MobiFon Holdings now has substantive control over MobiFon, the default risk on both entities is considered the same and the credit profile reflects that of the consolidated company," said S&P credit analyst Joe Morin. "Furthermore, the improving credit quality at MobiFon is underpinned by an improving macroeconomic environment in Romania (BB/positive/B), the company's growing subscriber base and increasing revenues and EBITDA."

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