S&P raises Sistema

S&P said it upgraded Sistema PJSFC to BB from BB-, citing its lower debt and the removal of the MTS share pledge from its loan pact with Sberbank.

“Over the last year, Sistema has reduced its leverage by selling assets and growing its portfolio, improving its LTV to slightly above 30% on Aug. 31, 2020, from about 40% a year ago,” the agency said in a press release.

“Sistema’s management remains committed to deleveraging,” S&P said.

Sistema is targeting gross debt in the medium term of about RUB 140 billion-RUB 150 billion compared with slightly less than RUB 175 billion on Aug. 31, 2020, pro forma Detsky Mir’s disposal, S&P said. Sistema reaped RUB 16.9 billion from the Detsky Mir sale.

The outlook is stable.

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