S&P rates Sistema notes B-

Standard & Poor's said it assigned its B- senior unsecured debt rating to the proposed seven-year notes to be issued by Sistema Capital SA, a fully guaranteed subsidiary of Russia-based diversified holding group AFK Sistema.

"The rating is based on the assumption that most of the proceeds from the proposed bond issue, which will be for a maximum amount of $350 million, will be used to refinance Sistema's short-term debt," said S&P credit analyst Pavel Kochanov. "This short-term debt includes $100 million of credit-linked notes maturing in February 2004 and other short-term bank debt."

S&P said the ratings on Sistema continue to reflect the group's aggressive financial and investment policy, which drives the growth of total debt of both the holding company and the group as whole. Despite the increase in the group's leverage, however, the ratings on Sistema remain supported by the solid performance of its telecom assets.

© 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.