Standard & Poor's Revises Outlook on Southern Telecommunications Company to Stable from Negative
KRASNODAR (RNWire) - Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; МICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern Federal District, issued a statement welcoming an announcement that Standard & Poor's Ratings Services has revised its outlook on the Company to Stable from Negative. At the same time, the 'B' long-term term corporate credit and 'ruA-' Russia national scale ratings were affirmed.
According to the Standard & Poor's credit analysts, the outlook revision and affirmation reflect the strengthening of UTK's liquidity position. “The company refinanced most of its short-term debt maturities. Not long ago UTK issued RUR 3 billion in bonds and obtained a number of bilateral loans from its key lending banks. All new debt is medium term, which boosts the company's previously very weak liquidity profile,” Standard & Poor’s states in its research.
The ratings are supported by the Company's status as a regional incumbent telecoms operator, its dominant position in traditional voice services, and growth in revenues from new services.
About UTK (South Telecom)
Southern Telecommunications Company PJSC, or UTK, is the principal provider of fixed line telecommunications for Russia’s Southern Federal District, a region covering 521.9 ths sq km with population of 18.4 million people. UTK provides various telecom services of local and intra-zonal telephony, broad range of value-added services (VAS) based on new technologies (services of Internet, VPN, CTV and others). H1 2009 operating revenue of UTK is up 4.9% over H1 2009 to 10,751.1 million rubles (RAS). Number of lines per employee is up 3.9% to 159.4 lines (RAS). Internet broadband access subscriber base includes 452.7 thousand users as of 1 July 2009.
UTK is a subsidiary of Svyazinvest holding which owns 38% of the Company’s authorized capital. UTK shares are traded in the Classic (KUBN; KUBNP) and Stock (KUBNG; KUBNPG) Markets of OJSC “RTS”, in the stock section of the Moscow Interbank Currency Exchange (MICEX) (UTEL; UTELP). One unit of American Depositary Receipt of UTK represents 50 common shares of the Company. UTK ADRs are traded in the US over-the-counter market (STJSY), and quoted in the over-the counter market of Frankfort and Berlin Stock Exchanges (KUE) and NEWEX (KUE).
Additional information about the Company can be accessed on the website at www.stcompany.ru, in the Information Disclosure System SKRIN Issuer, in the portal www.cbonds.info as well as in KUBN_RU of the systems Bloomberg and Reuters.
Newsmaker Contact Details
If you are a member of the media, and wish to register, go here.
Newsmaker Contact Details