S&P: Millicom unchanged

Standard & Poor's said its ratings and outlook on Millicom International Cellular SA (B+/stable) are unaffected by the company's announcement that it is considering strategic options for its business in Pakistan, Paktel Ltd.

Millicom's decision to potentially sell or close Paktel reflects significant doubts as to Paktel's ability to generate returns on investment at the levels required by Millicom, the agency said, adding that the proposed exclusion of Paktel from Millicom's diverse emerging-market portfolio will eliminate the negative impact on consolidated results of a currently cash-consuming subsidiary.

Careful use of cash and maintenance of good liquidity will be key for rating evolution given negative free operating cash flows resulting from high capital expenditures across the group, according to S&P.

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