S&P lifts Mobiltel view to positive

Standard & Poor's said it revised its outlook on Bulgaria-based mobile telecommunications operator Mobiltel AD to positive from stable, reflecting the expected improvement in Mobiltel's credit quality following the company's likely ownership change in late 2005.

At the same time, S&P affirmed its BB+ long-term corporate credit rating on Mobiltel and BB+ senior secured debt ratings on related entity Mobiltel Finance BV.

S&P said the outlook revision is driven by the announcement that Austria-based integrated operator Telekom Austria AG (BBB/positive/A-2) has acquired an option to purchase 100% of Mobiltel's share capital, exercisable in the third quarter of 2005. S&P said it believes that the potential change in ownership could enhance the credit quality of Mobiltel, depending on the terms of any financial or operational support Telekom Austria might provide if the transaction is completed.

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