S&P: Kyivstar unchanged

Standard & Poor's said its ratings and outlook on Telenor ASA (BBB+/stable/A-2) remain unchanged after the company's announcement that it will deconsolidate its 56.5%-owned Ukrainian subsidiary CJSC Kyivstar GSM (BB-/stable) from its 2006 accounts following Kyivstar's inability to provide required financial information.

Telenor's decision reflects its inability to control or exercise significant influence over Kyivstar, S&P said, given the current injunctions against the Ukrainian operator in connection with intense shareholder disputes.

S&P said it has long analytically deconsolidated Kyvistar's contribution to Telenor's accounts to reflect Telenor's only partial ownership, combined with ongoing disputes with Kyivstar co-shareholder Storm LLC and the risks involved in operating in Ukraine. Telenor's ratings remain underpinned primarily by its European operations, the agency added.

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