Research Update: Uralsvyazinform (OJSC) 'BB-' Long-Term Rating On CreditWatch Negative On Concerns About Aggressive Liquidity Management Mar 09
- ID: 1856999
- March 2009
- Standard & Poors
On March 2, 2009, Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit rating on Russian telecoms operator Uralsvyazinform (OJSC) on CreditWatch with negative implications. The rating action reflects our concerns over Uralsvyazinform's liquidity management, which we consider overly aggressive. We believe the company will repay a Russian ruble (RUR) 3 billion bond when it falls due at the end of March from cash balances and short-term committed credit lines. However, we expected the company to refinance with debt of a longer duration. The ratings are constrained by the company's weak liquidity profile, with significant short-term refinancing requirements; the need to control rising costs and preserve operating profitability; intense competition in the regional mobile telecoms market; and regulatory...
Companies mentioned in this report are: Uralsvyazinform (OJSC),Gazprombank,JSC VTB Bank
Action: On CreditWatch:Negative
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
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