BELARUS NEWS AND ANALYSIS

DATE:

05/10/2007

Telekom Austria ratings unaffected on buy of 70 pct stake in MDC - Moody's

MUMBAI (Thomson Financial) - Moody's Investors Service said the 'A3' long-term and 'Prime-2' short term debt ratings of Telekom Austria Group (TA) were not affected by the acquisition of a 70 pct stake in Belarusian mobile operator MDC for about 730 mln eur in cash.

The rating outlook remains stable as the transaction is consistent with company's investment policies, the impact of which translates into a future level of financial strength that is commensurate with the current ratings, Moody's (nyse: MCO - news - people ) said.

The company has also entered into a call and put option agreement related to the remaining 30 pct stake, exercisable at about 320 mln eur in the last quarter of 2010, the rating agency said.

Moody's expects TA's credit metrics to stabilise going forward.

Source:

http://www.forbes.com/markets/feeds/afx/2007/10/05/afx4189984.html