S&P puts North-West Telecom on watch

Standard & Poor's said it placed the global scale BB- long-term corporate credit and ruAA- Russia national scale ratings on North-West Telecom on CreditWatch with developing implications.

The watch placement reflects the uncertainties triggered by the company's decision to reorganize in order to be merged into OJSC Rostelecom, which has BB ratings and a stable outlook.

The agency said it is particularly concerned about the potential impact of reorganization on the company's liquidity position which, if it deteriorates, could put downward pressure on the ratings, S&P said.

A merger could be considered positive, assuming the absence of any technical or actual liquidity concerns coming out of the reorganization process, the agency said.

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