S&P ups Orascom Telecom

Standard & Poor's said it raised its long-term corporate credit rating on Orascom Telecom Holdings SAE and Orascom Telecom Finance SCA to B- from CCC+.

The agency also said it raised the issue rating on the $750 million of senior unsecured notes issued by Orascom Telecom Finance to CCC from CCC-. All ratings were removed from CreditWatch, where they were placed with positive implications in December.

The outlook is stable.

The ratings reflect S&P's belief that the receipt of about $800 million from Orascom Telecom's successful rights issue will be sufficient to support liquidity at the parent company level. This should offset the liquidity pressure resulting from the unpredictability of the receipt of dividends from the company's largest subsidiary in Algeria, the agency said.

The proceeds will shore up the parent company's cash position for interest payments, tax payments and debt maturities during 2010, S&P added.

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