Moody's confirms Mobile Telesystems

Moody's Investors Service said it confirmed the Ba2 corporate family and senior unsecured ratings of Mobile Telesystems OJSC and the Ba3 corporate family rating of Comstar United Telesystems.

The outlook is stable.

The action comes after the completion of the sale by their respective parent, Sistema JFSC, which is rated B1 with negative outlook, of Sistema's 50.91% stake in Comstar to Mobile Telesystems for a consideration of $1.32 billion.

Moody's said it does not expect Comstar to be distributing cash to Mobile Telesystems over the near to medium term.

Mobile Telesystems' liquidity and financial profile will be sufficiently strong on a stand-alone basis to accommodate the additional debt incurred to finance the transaction, the agency said.

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