OREANDA-NEWS. September 15, 2010. International rating agency Fitch Ratings has affirmed its long-term issuer default ratings in foreign and national currencies for Uralsvyazinform, revising its outlook to Positive from Stable.

Uralsvyazinform’s ratings assigned by Fitch Ratings include:

The long-term foreign currency issuer default rating at BB, with the outlook revised to Positive from Stable;

The long-term national currency issuer default rating at BB, with a Positive outlook;

The senior unsecured foreign currency rating was affirmed at BB;

The senior unsecured national currency rating was affirmed at BB;

A short-term foreign currency issuer default rating was affirmed at B;

The national long-term rating was affirmed at AA-(rus), the outlook was revised from Stable to Positive.

The national senior unsecured was affirmed at AA-(rus). 

Fitch Ratings points out in its press release:  “The revision of the outlook on the ratings to Positive reflects Fitch’s expectations that the upcoming merger between six incumbent regional telecommunications operators and Rostelecom will have a powerful impact on operating and financial synergy”.

The merged operator will receive such advantages as a more streamlined operating structure in all regions of its activities and market segments.  The new company will be positioned to apply the best practice in Russia and work out a single strategy in upgrading its network and technological solutions, which should make it possible to realize considerable economies of scale and also holds great potential for savings in terms of capital investments.

The new Rostelecom will be positioned to combine local and LD voice, as well as broadband Internet and possibly mobile telephony in one package.  The company’s broad service capabilities will give it a strategic and operating advantage.  Retail subscribers will receive a single account, which will also improve mutual relations with end consumers, the rating agency’s analysts maintain.