S&P raises MTS rating to BB+ following parent Sistema rating upgrade - Telecommunications - 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

S&P raises MTS rating to BB+ following parent Sistema rating upgrade

MOSCOW, Aug 29 (PRIME) -- International rating agency S&P Global Ratings (S&P) has revised up rating of Russias major mobile operator MTS to BB+ from BB with a Stable outlook following improvement of the rating of the operators main holder, Sistema, the agency said on Thursday in a statement.

We assess MTS stand-alone credit profile (SACP) at bbb-, three notches higher than the rating on Sistema. Our SACP on MTS is supported by the companys No.1 position in the very competitive Russian and Ukrainian mobile telecom markets and the companys strong credit ratios with adjusted debt to EBITDA of about 2.0x as of June 30, S&P said.

We view MTS as an insulated subsidiary of Sistema, and, as a result, we rate MTS above Sistema. This is because we believe that MTS operating and financial performance are independent from those of Sistema. At the same time, we cap our rating on MTS at two notches above that on Sistema.

This cap reflects our view of MTS relative level of insulation from Sistema, as MTS lacks features such as legislative restrictions, including active regulatory oversight, or alternatively, a publicly stated policy by a regulator or appropriate legislative body aimed at protecting the credit quality of the company. In addition, some of MTS shares are pledged to secure Sistemas long-term loan from Sberbank.

S&P also said that if Sistemas control over MTS were to lessen, it could have a positive effect on MTS rating on MTS. But this is not our base case, because we understand that Sistema does not plan to sell any MTS shares, the agency said.

We could upgrade MTS if we upgraded Sistema, or if Sistema reduces its control over MTS and the rating on MTS is no longer constrained by Sistemas lower credit quality.


29.08.2019 15:01
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 68.7705 -0.0118 21 feb
USD 63.7413 +0.0540 21 feb
Stock Market Indices
1D 1W 1M 1Y
rtsi 1535.81 -0.41 18:50 20 feb
micex 3125.10 +0.34 18:50 20 feb
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 234.60 +1.16 18:49 20 feb
lkoh 6543.50 +0.53 18:48 20 feb
rosn 470.40 +1.02 18:49 20 feb
sber 250.15 +0.18 18:49 20 feb
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 68.8300 +0.2100 14:59 20 feb
USDTD 63.9025 +0.2550 17:44 20 feb