The rating action mirrors the raising of the Agency’s transfer and convertibility assessment for Russia to “BBB-” from “BB+” following its confirmation of the Russia sovereign foreign currency rating at the “BB+” level. According to S&P, MegaFon’s rating can exceed the sovereign level because MegaFon would be able to meet its obligations in a sovereign foreign currency stress scenario.
The Agency has also confirmed the Company’s local currency rating at the “BBB-” level with a “Stable” outlook reflecting MegaFon’s solid competitive position in mobile data stemming from its superior 3G network quality and competitive advantage in 4G, its improving operational profile and its conservative financial policy.
Gevork Vermishyan, Chief Financial Officer of MegaFon, commented on the S&P announcement as follows: “We are very pleased with the Agency’s decision to upgrade the Company’s rating to the highest level among the Russian telecoms and one of the highest in a broader corporate universe. We believe that this action reflects among other things MegaFon’s first successful steps in the implementation of its new strategy which the Company adopted earlier this year, as well as our commitment to strict financial discipline and a solid corporate governance profile, carried out by the Board of Directors”.
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NOTES TO EDITORS
MegaFon PJSC is a leading Russian integrated telecommunication service provider, operating in all segments of the telecommunications markets in Russia, and in the Republics of Abkhazia, South Ossetia and Tajikistan. MegaFon is a recognized market leader in the provision of mobile data services, was the first operator in Russia to launch commercial operation of a third generation (3G) network and was the first operator in the world to launch commercial operation of an LTE-Advanced (4G) data network. MegaFon is traded on the Moscow Exchange and the London Stock Exchange under the symbol MFON. Additional information about MegaFon and the products and services provided by MegaFon can be found at: http://www.megafon.ru
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS
Some of the information in this document may contain or refer to projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as “expect”, “believe”, “anticipate”, “estimate”, “forecast”, “intend”, “will”, “could”, “may”, or “might” the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions, and are based upon various assumptions which are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control. We may not achieve or accomplish these plans or predictions. The Company does not necessarily intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries in which the Company operates, as well as many other risks specifically related to the Company and its business and operations.
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