Romanian RCS&RDS company, one of the biggest telecom operators in the region, will try to boost its low liquidity level by selling bonds worth $200m, maturing in 2017, on foreign markets. The operation will be handled by Citibank.

RCS&RDS bonds are unsecured and Citibank has not pledged to buy them in case they should not be subscribed by investors, according to Standard & Poor's rating agency.

The interest rate is likely to go beyond 8% in dollars, higher than in the case of a loan.

S&P and Moody's rating agencies assigned RCS bonds "B+" and "Ba3" ratings, respectively, attached to a company able to meet its financial obligations, but vulnerable to a possible deterioration of CEE economies.

RCS has short-term debts worth $59.6m, but has to refinance in 2011 and 2012 loans worth more than $500m, according to S&P.

Analysts expect RCS to generate rising revenues and income this year, after it reached turnover worth 518m dollars and operating income of $78m in the first nine months of 2009.

RCS&RDS, the biggest telecom operator controlled by a Romanian, fared better than other telecom companies during the 2009 crisis year and the "massive" investments operated during this period place the company in a very good position to shortly revert to revenue and operating income growth, according to Moody's and S&P analysts.

The rating agencies' reports provide unprecedented details about RCS&RDS 2009 activity and plans for 2010, as the company systematically declines providing data on its financial figures or commercial strategy.

If the company's revenues in Q4 advanced at the same pace as in the first 9 months, RCS is likely to have ended 2009 with $691m turnover, a drop of just $9m from 2008.

Rating agencies say the bond issue is extremely important for the company. "A successful bond issue may secure a very important cash rese