Fitch affirms Orascom Telecom

Fitch Ratings said it affirmed Orascom Telecom Tunisie's long-term foreign- and local-currency issuer default ratings at BB+. Fitch also said it changed the outlook to positive from stable, and assigned a national long-term rating of A(tun).

The ratings reflect its vastly improved credit profile, driven by the company's elevated operating profitability, Fitch said, and its strengthening position in the domestic market under its popular Tunisiana brand.

The ratings also consider an expectation that the business will continue its current dividend policy, with a payout ratio of 75% in 2008 and beyond to its shareholders, the agency said. In Moody's view, continuation of the strong free cash flow generation and further improvement in leverage metrics could trigger an upgrade.

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