S&P upgrades Elisa

Standard & Poor’s said it raised the long-term corporate credit and issue ratings on Elisa Corp. to BBB+ from BBB.

The agency also said it affirmed the company’s A-2 short-term corporate credit rating.

The outlook is stable.

The upgrade reflects an anticipation that Elisa’s EBITDA and free operating cash flow will continue to improve, S&P said.

This is supported by mobile data growth opportunities, owing to rising data consumption and higher prices as customers move to services with faster speeds, the agency said, and by continued cost-cutting measures.

Elisa’s capital expenditures also are expected to remain modest at 12% to 13% of revenues, which is relatively low compared with European peers, S&P said.

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