S&P ups Southern Telecom view to stable

Standard & Poor's said it revised its outlook on Southern Telecommunications Co. to stable from negative due to the company's ability to limit the deterioration of its financial profile.

At the same time, S&P affirmed its CCC+ long-term corporate credit rating and ruBB Russia national scale and senior unsecured debt ratings on the company.

S&P said the outlook revision reflects the noticeable improvements of Southern Telecommunications' operating and financial performance during 2005. The company has successfully maintained its promised focus on cost control, much reduced capital spending and profitability enhancements.

The ratings remain constrained, however, by the company's continuing weak liquidity position, significant debt levels, limited business diversification and uncertainties associated with industry restructuring, the agency said. These risks are somewhat moderated by the company's solid market position, its improving operations, progress in the regulation of local tariffs and growth potential.

© 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.