Moody's Has Assigned MTS Russia A Rating Of "Baa3" With A Stable Outlook
International rating agency Moody's assigned a long-term issuer rating of "Baa3" to MTS, the Outlook is stable, the Agency said in a statement.
"We assigned MTS an investment-grade rating based on our expectations that the company will be able to maintain high operational and financial performance, conduct a balanced financial policy, adequately determine the number of capital expenditures, and maintain high liquidity indicators," Mikhail Shipilov, assistant Vice President and analyst at Moody's, said in the release.
Moody's notes that the investment rating assigned to MTS reflects the company's strong business profile due to its leading position in the Russian telecommunications market and strong operational performance. A stable rating Outlook reflects the Agency's view that MTS will maintain the above indicators and market position.
Also, the Agency expects MTS to maintain its strong creditworthiness and high level of liquidity. In his opinion, the company's revenue will grow in 2020-2022, profit will remain stable, and the ratio of adjusted debt to EBITDA will remain at the level of 2.4 x-2.5 x in 2020-2022.
At the same time, Moody's forecasts that the company's dividend payout will reach 90 billion rubles this year.
MTS is the largest Russian mobile operator. The main shareholder is Sistema, which owns 44.36% of the operator's authorized capital (including indirect ownership through controlled companies — 55.64% of shares, effective participation — 50.007%).