Moody's puts Kyivstar on review for possible downgrade due to potential failure to provide financial information
March 29, 2007
London, 29 March 2007 -- Moody's Investors Service today put Kyivstar's ("Ba3" corporate family rating, Positive Outlook) on review for possible downgrade following the public disclosure of the injunction issued by the Kyiv City Commercial Court, prohibiting the company from making any of its financial or other reports and information relating to the financial or business activities available to any third parties. The injunction was made on the application of Storm, the Ukranian subsidiary of Altimo (Alfa Group), one of the two principal shareholders of the company. Kyivstar is contesting the actions, however the outcome and its timing remain uncertain.
While closely monitoring the situation, Moody's is currently assessing the company's position in light of uncertainty following the injunction and potential implications of the inadequate presentation of the information to market participants.
Kyivstar G.S.M. Joint Stock Company is the largest wireless telecommunication operator in Ukraine with a subscriber share of 44.7% as at 30 September 2006, US$ 1.234 billion in revenues and US$ 752 million in reported EBITDA for the first nine months of 2006.
Operational since 1997, Kyivstar has focused on Ukraine alone, and had 17.7 million subscribers and over 97% population network coverage as at 30 September 2006.
Company — Kievstar GSM
Full nameCJSC Kyivstar GSM