S&P: Millicom negative

Standard & Poor's said it revised its outlook on Millicom International Cellular SA to negative from stable due to concerns over recent developments in two of its Asian markets.

S&P also affirmed its B+ long-term corporate credit and B- senior unsecured debt ratings on Millicom.

"Standard & Poor's is increasingly concerned about the delay in the commencement of Millicom's GSM services in Pakistan due to a dispute with the Pakistan telecommunications regulatory authority," said S&P credit analyst Michael O'Brien. "The delay may affect Millicom's future competitive position and constrain its business and financial targets in the competitive high-growth Pakistan mobile telecoms market."

"We are also concerned about the lack of clarity regarding the details of the renewal of Millicom's business cooperation agreement with the Vietnamese government, which expires on June 30, 2005, and the potential costs associated with the renewal," added O'Brien.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.