OREANDA-NEWS. Standard & Poor's Ratings Services said today that its rating and outlook on Russian industrial conglomerate Sistema (JFSC) (BB-/Stable/-) are not changed by Sistema's fixed-line subsidiary Comstar UTS' $1,3 billion acquisition of a blocking 25% plus one share stake in Russian government-controlled telecommunications holding Svyazinvest.

The rating on Sistema factors in the conglomerate's aggressive growth appetite and predisposition to opportunistic investments and acquisitions. Furthermore, Sistema's interest in the major regional fixed-line telecoms assets controlled by Svyazinvest, and the holding's potential privatization, is consistent with Sistema's strategy of expanding and strengthening its core telecoms operations.

Following a successful IPO earlier this year, Comstar had nearly $1 billion in cash set aside for strategic investments, and accordingly, this transaction should neither result in a material increase in financial risk nor significantly impair liquidity.