S&P upgrades MTS to investment grade 'BBB-'

S&P upgrades MTS to investment grade 'BBB-'

S&P upgrades MTS to investment grade 'BBB-'

The international rating agency S&P Global Ratings has upgraded the long-term credit ratings of MTS (MCX: MTSS) PJSC in foreign and local currencies from BB + to BBB-, which is an investment grade. The outlook on the ratings is “stable”.

As reported, on September 15, S&P raised the long-term rating of AFK Sistema, the parent company of MTS, to BB from BB-.

“We assess MTS's own creditworthiness at 'bbb-' and continue to consider the company an independent division of Sistema, and therefore we rate MTS's rating two notches higher than Sistema's,” the agency said in a press release.

MTS 'stable rating outlook is similar to that of Sistema. It reflects the expectations of S&P experts that MTS's adjusted debt / EBITDA ratio will remain stable at 2.5x or below, the press release said.

AFK Sistema owns 44.2% of MTS, including indirect participation through controlled entities – 55.84%. 44.16% of the operator's shares are in free float.

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