S&P puts Central Telecommunications on watch

Standard & Poor's said it placed its global scale BB- long-term corporate credit and ruAA- Russia national scale ratings on Central Telecommunications OJSC on CreditWatch with developing implications.

The CreditWatch placement reflects the uncertainties triggered by the company's decision to reorganize in order to be merged into OJSC Rostelecom, which is rated BB with a stable outlook.

The agency said it is particularly concerned about the potential impact of reorganization on the company's liquidity position which, if it deteriorates, could put downward pressure on the ratings.

A merger of the company into the larger Rostelecom entity would be a positive rating factor, assuming the absence of any technical or actual liquidity concerns coming out of the reorganization process, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.