S&P puts MTS’ ratings on watch neg after parent’s downgrade

MOSCOW, Sep 12 (PRIME) -- International rating agency S&P Global Ratings (S&P) has put long-term ratings in national and foreign currencies of ÂÂ+ of Russian mobile operator MTS on Watch Negative from Developing, the agency said late on Monday.

The move followed the agency’s downgrading of ratings of MTS’ major shareholder, multi-industry holding Sistema to BB- and kept the indicators on Watch Negative upon an uncertain outcome of its conflict with oil major Rosneft.

S&P expects pressure to strengthen on MTS’ ratings in case of further decrease of Sistema’s ratings. The agency said, however, that MTS’ operating activity is quite independent from results of its major owner.

In late August, a court ordered Sistema to pay 136.3 billion rubles to Rosneft out of the claimed 170.6 billion rubles. The holding intends to litigate.

(57.1694 rubles – U.S. $1)

End