S&P: Kyivstar unaffected

Standard & Poor's said its ratings and outlook on CJSC Kyivstar GSM (BB-/stable) remained unchanged despite the possibility that the company might breach an information covenant of its eurobonds. The covenant requires the company to provide full audited results for the previous fiscal year no later than April 30.

The agency said it considers Kyivstar's liquidity to be largely sufficient to make interest payments on its outstanding debt, given on-balance-sheet cash and cash equivalents of $473 million at Sept. 30 and the company's ongoing satisfactory operating development. The company had total lease-adjusted debt of $648 million at Sept. 30.

Furthermore, if the information covenants were breached, S&P said it does not think investors would have an incentive to force repayment of the bonds, given the level at which the bonds are trading.

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