Moody’s lifts ER-Telecom to B2/Baa1.ru

Moody's Investors Service said it upgraded ER-Telecom Holding CJSC’s corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD following substantive improvements to the company's financial metrics and operating performance.

The outlook is stable.

At the same time, Moody's Interfax Rating Agency upgraded the long-term national scale corporate family rating to Baa1.ru from Baa2.ru.

The upgrade reflects a material improvement in ER-Telecom's financial metrics and operating performance since the assignment of its first-time rating in 2011, Moody’s said.

The B2 rating takes into account the company's: (a) demonstrated ability to achieve geographic expansion and strong double-digit revenue growth over the past three years; (b) strong competitive position and brand recognition; (c) robust profitability and positive free cash flow generation in most of the markets in which it has operated for more than three years; (d) modern fixed-line network, which requires fairly low maintenance capex; and (e) solid liquidity and long-term debt maturity profile.

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