S&P: TeliaSonera's Ratings Stay the Same

LONDON -- Standard & Poor's Ratings Services said today that its ratings and outlook on Nordic telecommunications operator TeliaSonera AB (A/Stable/A-1) remain unaffected by the group's announcement of plans to distribute 30%-50% of net income as dividends, and return Swedish krona (Skr) 30 billion ($3.9 billion) to shareholders over the period 2005-2007.

This is a material return to shareholders and TeliaSonera's credit quality carries a degree of event risk given its stated ambitions to participate in the long-awaited consolidation of the European telecoms markets and gain control of its main emerging-market operations. However, in addition to the fact that control of these operations will not be easy due to the significance presence of other shareholders, the above stated risks are mitigated by the group's sound credit protection factors.

These include TeliaSonera's:

The group's maintenance of a controlled financial policy, therefore, remains a major ratings driver for the group.

TeliaSonera AB