S&P places Rostelecom on credit watch negative on Tele2 purchase

MOSCOW, Mar 22 (PRIME) -- International rating agency S&P Global Ratings has placed the BB+ rating of Russian state-controlled telecom operator Rostelecom on credit watch with a Negative outlook over the planned acquisition of mobile operator T2 RTK Holding, working under the Tele2 brand, the agency said on Friday.

The deal could undermine Rostelecom’s credit coefficients up to the level incompatible with BB+ in view of the existing limited reserve up to the rating’s limit.

The rating will be revised in the next three months.

The company has agreed with partners in T2 RTK Holding a model of consolidation of the mobile operator, in which Rostelecom already owns 45%.

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