S&P rates Sistema program B+

Standard & Poor's said it assigned its B+ senior unsecured debt rating to the proposed 30-year, up to $3 billion MTN program of Sistema Capital SA, the financing vehicle for Sistema (JSFC) (BB-/stable), the guarantor of the debt.

"The rating on the proposed MTN program mirrors the senior unsecured debt ratings of the conglomerate," said S&P credit analyst Lorenzo Sliusarev.

"We expect that Sistema will use the proposed MTN facility for general corporate purposes, including liquidity support and transaction funding or refinancing of existing debt obligations."

The agency added that the rating on Sistema reflects the consolidated credit risk of its various operating subsidiaries, but principally that of its key telecoms assets, Mobile TeleSystems (OJSC) (BB-/stable) and, to a lesser degree, Moscow City Telephone Network (JSC) (BB-/stable, Russia national-scale ruAA-).

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