Standard & Poor's on laskenut TeliaSonera AB:n luottoluokitusta A-/A-2:een vakain tulevaisuuden näkymin

Standard & Poor's Rating Services on 28.10.2005 laskenut TeliaSonera AB:
n pitkä- ja lyhytaikaiset corporate- luottoluokitukset A-/A-2:een A/A-1:
stä. Tulevaisuuden näkymät ovat vakaat.

“Olemme tietoisia Standard & Poor’sin tämänpäiväisestä luottoluokitusta
koskevasta muutoksesta. Kuitenkaan TeliaSoneran yleisessä
taloudellisessa tilanteessa tai strategisissa tavoitteissa ei ole
tapahtunut mitään merkittävää muutosta. Luotonottokykyämme kuvaavat
mittarit ovat edelleen hyvin vahvoja ja tällä toimialalla Euroopan
vahvimpia. Kaiken kaikkiaan, emme odota Standard & Poors’in toimella
olevaan merkittävää vaikusta TeliaSoneran luottorahoituksen
kustannuksiin”, toteaa TeliaSoneran Varatoimitusjohtaja ja talous- ja
rahoitusjohtaja Kim Ignatius.

Lisätietoja aiheesta allaolevassa Standard & Poors’in
lehdistötiedotteesta.

Sweden's TeliaSonera AB Ratings Lowered To 'A-/A-2' On Weaker Business
Profile; Outlook Stable
Contacts
Primary Credit Analyst: Patrice Cochelin, Paris (33) 1-4420-7325;
Secondary Credit Analyst: Leandro De Torres Zabala, London (44) 20-
7176-3821;
Rationale
On Oct. 28, 2005, Standard & Poor's Ratings Services lowered its long-
and short-term corporate credit ratings to 'A-/A-2' from 'A/A-1' on the
largest Nordic telecommunications operator, TeliaSonera AB. The outlook
is stable.

The downgrade reflects TeliaSonera's continued
struggle against difficult conditions in its core Swedish and Finnish
markets, despite some signs of stabilization in the past quarter.
Although TeliaSonera's balance sheet remains a source of rating support,
fierce competition in mobile telephony in Finland, and to a lesser
degree in Sweden, has weakened the company's business profile. The
ratings continue to reflect TeliaSonera's strong positions in its core
Nordic and Baltic markets, and the company's conservative financial
profile.

At Sept. 30, 2005, TeliaSonera had on-balance-
sheet debt of Swedish krona (Skr) 26.8 billion ($3.4 billion).

For the 12 months ended Sept. 30, 2005, Finland's
share of total EBITDA fell to 14%, from 23% one year earlier. In the
company's cash-generative Swedish fixed-line business, which represents
36% of total EBITDA, third-quarter 2005 profits dropped 6% year-on-year,
on continued stiff competition, increased activity in fixed-to-mobile
substitution, and Voice over Internet Protocol development. TeliaSonera
is still performing well in Denmark, however, essentially on the back of
the Orange Denmark acquisition at year-end 2004. Similarly, the
company's operations in the Baltic region are benefiting from the
consolidation of Estonia's No. 1 mobile provider EMT.

Ongoing very strong free cash flow generation--
a critical support for the ratings--represented 18% of revenues in the
12 months ended Sept. 30, 2005.

TeliaSonera's sound capitalization also continues
to support the ratings, as debt, net of excess cash and adjusted for
operating leases and after-tax pension underfunding, was just 0.6x
EBITDA before one-off items.

The company's shareholder return policies include
a 30%-50% payout ratio and the continuation of a Skr30 billion
additional return program, of which Skr10 billion has already been
executed. Another Skr10 billion is to be proposed at the next Annual
General Meeting in April 2006.
Short-term credit factors
Our 'A-2' short-term credit rating reflects TeliaSonera's strong
internal liquidity, good cash flow capacity and visibility, and
significant access to capital markets.

At June 30, 2005, TeliaSonera's liquidity was supported by:

* Available cash and short-term investments of Skr17 billion, of which
Skr1 billion is blocked to guarantee payments in Italy;
* Expected continued strong free cash flow; and
* Undrawn committed bank credit facilities of about Skr10 billion.

The main near-term cash requirements--short-term
debt of Skr6.2 billion and the exceptional Skr10 billion dividend
payment to be proposed are therefore easily manageable.

Outlook
The stable outlook reflects Standard & Poor's expectations that
TeliaSonera will successfully address challenging Nordic market
conditions, at least stabilizing its revenue and profitability in its
core Nordic markets, and fund possible small to midsize acquisitions
while preserving conservative financial leverage. Notably, we expect net
adjusted debt to remain at or below 2x EBITDA, excluding contributions
from the company's risky and not fully controlled central Asian
operations.

A significant and unexpected increase in leverage,
particularly beyond our leverage target of 2x, or further deterioration
in operating performance in the core Nordic markets could cause downward
pressure the ratings. We do not, at present, foresee near-term credit
upside given the trading environment in Finland and Sweden.

Ratings List

To From
TeliaSonera AB
Corporate credit rating A-/Stable/A-2 A/Negative/A-1
Commercial paper A-2 A-1


TeliaSonera Finland Oyj
Corporate credit rating A-/Stable/A-2 A/Negative/A-1


NB: This list does not include all ratings affected.


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Lisätietoja lehdistölle antaa:
TeliaSoneranlehdistöpalvelu, +46-8-713 58 30