Standard & Poors Reaffirms Rostelecom Rating at BB with Stable Outlook
OREANDA-NEWS. January 11, 2011. Rating agency Standard & Poor's (S&P) has published a report in which it announced that the long-term corporate rating of Rostelecom (RTS and MICEX: RTKM, RTKMP; OTCQX: ROSYY) has been reaffirmed at BB with a stable outlook.
“The stable outlook reflects our expectations that Rostelecom maintains leadership on the long-distance telecommunications market and will gradually raise the diversification of its revenues and OIBDA. We also expect that the reorganization of Svyazinvest and its merger of the regional telecommunications operators (RTOs) into Rostelecom will not impact the rating. We understand that Rostelecom is in the process of consolidating the existing liabilities of Svyazinvest’s regional operators and may perhaps require additional borrowed funds for this reason, although this risk will be neutralized by its consolidation of stable revenue and steady cash flows from RTOs”, Standard & Poor's pointed out in its statement.