Moody's may up Orascom

Moody's Investors Service said it placed Orascom Telecom's B2 corporate family rating on review for possible upgrade.

The rating was previously on review with direction uncertain.

This follows news by VimpelCom Ltd. that its shareholders had approved the acquisition of Wind Telecom SpA, the majority owner of Orascom Telecom, Moody's said.

The upgrade review reflects the benefits to Orascom of being part of a more diversified and financially sound telecoms group, the agency said, and an expectation that the majority of Orascom's financial indebtedness will be refinanced, thereby implying a lower short-term probability of default than existed previously.

The review also considers the fact that, despite the recent significant challenges that the Orascom group has faced, there remained meaningful realizable value within its assets, Moody's added.

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