Fitch rates Sistema Shyam loans A-(ind)(SO)

Fitch Ratings said it assigned Sistema Shyam Teleservices Ltd.'s Rs. 13 billion term loan a national long-term rating of A-(ind)(SO). The agency also said it withdrew the A-(ind)(SO) rating on its term loan of Rs. 7.5 billion as that has been repaid in full on maturity.

The rating is based solely on the unconditional and irrevocable corporate guarantee from SSTL's parent, Sistema JSFC, Fitch said.

The company has the license and the required spectrum to roll out services in 22 telecom circles in India, the agency said, and is in the process of commencing its pan-India telecom services network.

But it still has a weak stand-alone credit profile, Fitch said, and India's telecom market is highly competitive.

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