ROSTELECOM PJSC (RKMD)
ROSTELECOM PJSC: Following announcement of 100% Tele2 consolidation Fitch
affirms Rostelecom's investment grade rating of 'BBB-'
18-Nov-2019 / 17:00 MSK
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Following announcement of 100% Tele2 consolidation Fitch affirms Rostelecom's
investment grade rating of 'BBB-'
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Moscow, Russia - November 18, 2019 - Rostelecom PJSC (MOEX - RTS: RTKM, RTKMP;
OTCQX: ROSYY), Russia's national telecommunications operator, today announces
that its Issuer Default Rating (IDR) of 'BBB-' with a Stable Outlook has been
affirmed by Fitch Ratings following the announcement of 100% Tele2
consolidation. Fitch outlines that the enlarged company will have an
opportunity to offer bundled services, achieve a better network coverage and
extract significant synergies in rolling out a future 5G network. Moreover,
Rostelecom group will be better equipped to ensure seamless switch between
mobile and fixed-line solutions and manage technological innovations.
Further information on Rostelecom's ratings is available at
www.fitchratings.com [1].
* * *
PJSC Rostelecom [2] is the largest digital service provider, operating in all
segments of the telecommunications market in Russia, it serves millions of
households, the state and private enterprises across the country.
Rostelecom is Russia's undisputed market leader, providing high-speed Internet
access to over 13.1 million users and pay-TV services to more than 10.3
million clients, over 5.5 million of which are subscribed to Rostelecom's IPTV
services on a national level.
In the nine months of 2019, the Group generated RUB 242.6 billion of revenues,
RUB 81.4 billion of OIBDA (33.6% of revenue) and RUB 16.4 billion of net
income.
The Group is the leading provider of telecommunications services to government
bodies and corporates of all levels.
Rostelecom is a key strategic innovator that provides solutions in the
following fields: E-Government, cybersecurity, data-centers and cloud
computing, biometry, healthcare, education and housing & utility services.
The Group's stable financial position is confirmed by its credit ratings.
Rostelecom has been assigned 'BBB-' and 'BB+' international credit ratings by
Fitch Ratings and Standard&Poor's respectively, and AA(RU) by ACRA.
* * *
Certain statements in this press release are forward-looking statements within
the meaning of the U.S. federal securities laws and intended to be covered by
the safe harbours created thereby.
Those forward-looking statements include, but are not limited to:
? Assessment of PAO Rostelecom's (the Company) future operating and
financial results as well as forecasts of the present value of future cash
flows and related factors;
? The Company's plans to take ownership stakes in other organisations;
? the Company's anticipated capital expenditures and plans to construct and
modernize its network;
? the Company's expectations as to the growth in demand for its services,
plans relating to the expansion of the range of its services and their
pricing;
? the Company's plans with respect to improving its corporate governance
practices;
? the Company's expectations as to its position in the telecommunications
market and forecasts on the development of the market segments within which
the Company operates;
? economic outlook and industry trends;
? the Company's expectations as to the regulation of the Russian
telecommunications industry and assessment of impact of regulatory
initiatives on the Company's activity;
? other statements regarding matters that are not historical facts.
Such forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from those
expressed or implied by these forward-looking statements. These risks,
uncertainties and other factors include:
? risks relating to changes in political, economic and social conditions in
Russia as well as changes in global economic conditions;
? risks relating to Russian legislation, regulation and taxation, including
laws, regulations, decrees and decisions governing the Russian
telecommunications industry, securities industry as well as currency and
exchange controls relating to Russian entities and their official
interpretation by regulatory bodies;
? risks relating to the Company, including the achievement of the
anticipated results, levels of profitability and growth, ability to create
and meet demand for the Company's services including their promotions, and
the ability of the Company to remain competitive in a liberalized
telecommunications market;
? technological risks associated with the functioning and development of the
telecommunications infrastructure, technological innovations as well as the
convergence of technologies;
? other risks and uncertainties. For a more detailed discussion of these and
other factors, see the Company's Annual Report and the Company's other
public filings.
Many of these factors are beyond the Company's ability to control or predict.
Given these and other uncertainties, readers are cautioned not to place undue
reliance on any of the forward-looking statements contained herein or
otherwise. The Company does not undertake any obligation to release publicly
any revisions to these forward-looking statements (which are made as of the
date hereof) to reflect events or circumstances upon the annual report
publication or to reflect the occurrence of unanticipated events, except as
may be required under applicable laws.
ISIN: US7785291078
Category Code: MSCH
TIDM: RKMD
LEI Code: 2534001D752JPNM0H170
Sequence No.: 29939
EQS News ID: 915563
End of Announcement EQS News Service
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(END) Dow Jones Newswires
November 18, 2019 09:00 ET (14:00 GMT)
