S&P boosts Mobile TeleSystems outlook to positive

Standard & Poor's said it revised its outlook on Mobile TeleSystems (OJSC) to positive from stable.

At the same time, the BB- long-term corporate credit rating on the company and its senior unsecured debt ratings were affirmed, the agency said.

The agency noted that the outlook revision reflects the improving credit profile and potential for an upgrade of the company's parent, Sistema (JSFC) (BB-/positive), which has control over Mobile TeleSystems' strategy and financial policy through its 52.8% stake in the company.

At the same time, Mobile TeleSystems' strong operating performance and solid financial position enhance its credit profile, the agency said, adding that the rating on Mobile TeleSystems continues to principally reflect the consolidated credit risk of Sistema. MTS is Sistema's key strategic asset and ultimately represents a large majority of the group's revenues, profitability, cash flow generation and asset value.

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