Moodys places MegaFons ratings under review for downgrade - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Moodys places MegaFons ratings under review for downgrade

MOSCOW, Jul 19 (PRIME) -- Moodys Investors Service has placed under review for downgrade the Ba1 corporate family rating and the Ba1-PD probability of default rating of big Russian mobile operator MegaFon, the ratings agency said on Thursday.

The rating action follows the announcement on Monday by MegaFon Investments (Cyprus) Ltd. (MICL), a wholly owned subsidiary of MegaFon, of a tender offer to purchase for cash up to 128,950,036 of ordinary shares listed on the Moscow Exchange and the global depositary receipts (GDRs) listed on the London Stock Exchange (LSE), representing in total 20.8% of the companys issued and outstanding shares.

The buy-back is part of the approved program to terminate the listing of GDRs on the LSE and materially reduce the free float on the Moscow Exchange. If successful, it will result in the company becoming fully private. The tender offer is expected to expire on August 22 with the announcement on the results on or about August 23.

The rating action is primarily driven by the anticipated increase in leverage as a result of the transaction, which is likely to lead to a credit profile no longer commensurate with the current ratings positioning at Ba1 with a positive outlook. The delisting will also elevate risks related to the potential changes in MegaFons corporate governance, although no such intention was communicated by the company, and the associated shift towards a more aggressive financial policy under its new business strategy.

As part of the review, Moodys will consider the impact of the proposed buy-back on MegaFons business and financial risk profile. We will also review the impact of other potential corporate actions and initiatives mentioned above on MegaFons longer term credit and operational profile to evaluate whether the anticipated deviations can still be accommodated within the Ba1 rating.

Moodys will aim to close the review within the next three months.


19.07.2018 11:59
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 69.9431 +0.0823 17 dec
USD 62.7686 +0.2142 17 dec
Stock Market Indices
1D 1W 1M 1Y
rtsi 1511.04 +0.64 15:39 16 dec
micex 3005.80 +0.31 15:39 16 dec
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 251.69 +0.88 15:18 16 dec
lkoh 6187.00 +0.31 15:18 16 dec
rosn 449.95 -0.25 15:18 16 dec
sber 241.30 +0.04 15:18 16 dec
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 69.7850 +0.0600 14:59 16 dec
USDTD 62.6300 -0.1000 15:19 16 dec