S&P affirms Sistema

Standard & Poor's said it affirmed the BB corporate credit rating on Sistema (JSFC) and removed the rating from CreditWatch, where it had been placed with negative implications on April 1.

The outlook is.

"The affirmation reflects Standard & Poor's Ratings Services' view that the acquisition of Bashkir Oil and Energy Group will not likely deteriorate Sistema's financial profile beyond what we would view as compatible with the BB rating," S&P analyst Alexander Griaznov said in a statement.

Ratings are constrained by the company's relatively aggressive financial policy, its predisposition for acquisitions and the cash consumption of many of its growth-oriented business segments, the agency said.

The strong performance of Sistema's core telecoms assets, the robust cash-generative nature of its largest subsidiaries and the company's tangible progress in streamlining operations support the ratings, the agency noted.

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