S&P might cut Sistema, Mobile TeleSystems

S&P said it changed the CreditWatch implications to negative from developing on the B+ long-term corporate credit rating on Sistema PJSFC and the B+ issue rating on the company's $500 million senior unsecured loan facility.

The ratings originally were placed on CreditWatch developing on Dec. 6.

The agency corrected the issue rating on the $500 million senior unsecured notes issued by Sistema International Funding by lowering it to B+ from BB-, and subsequently placed the B+ issue rating on CreditWatch negative, in line with the other ratings on Sistema.

At the same time, S&P changed the CreditWatch implications to negative from developing on the BB long-term corporate credit rating on Mobile TeleSystems PJSC and the BB issue rating on its senior unsecured debt.

The agency said the CreditWatch placements reflect the risk that Sistema's liquidity could weaken as a result of the settlement with Rosneft OJSC.

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