S&P: Mobiltel on positive watch

Standard & Poor's said it placed its BB+ long-term corporate credit rating Mobiltel AD and its BB+ senior secured debt rating on Mobiltel Finance BV on CreditWatch with positive implications pending the completion of the purchase of Mobiltel by Telekom Austria AG (TA, BBB+/stable/A-2).

The CreditWatch placement follows TAs exercising of its option to purchase 100% of Mobiltel's share capital in mid-July. S&P said it believes that the change in Mobiltel's ownership will enhance the credit quality of the company, depending on the terms of any financial or operational support TA might provide when the transaction is completed.

The agency noted that the new ownership structure is not considered by Mobiltel to represent a change of control under the terms of the company's notes, which would have given rise to a redemption option for noteholders and the need to refinance the notes.

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