TEXT-S&P release on Central European Media Enterprises

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March 1 - Standard & Poor's Ratings Services said today it revised its outlook on Central European Media Enterprises Ltd. (CME) to positive from stable, reflecting the group's improved financial profile and continued operational momentum.

At the same time, Standard & Poor's affirmed its 'BB-' long-term corporate credit and 'B+' senior unsecured debt ratings on CME.

"The outlook revision follows continued growth in CME's TV advertising markets, an improving business environment, and the group's control of its Slovakian station, which was unconsolidated at the time of the initial rating assignment," said Standard & Poor's credit analyst Olli Rouhiainen.

"The positive outlook could translate into a higher rating over the next 12 to 18 months if the group can demonstrate improving cash generation at both the FFO and FOCF levels while maintaining operational momentum over the next 12 months," Mr. Rouhiainen added.

To attain a higher rating CME would need to achieve and maintain adjusted debt to EBITDA of less than 4x and adjusted FFO to total debt of more than 16%.

The outlook could be revised to stable if the group makes an acquisition that takes financial ratios outside the stated targets or if its TV stations underperform. ((New York Ratings Team, Reuters Messaging: caryn.trokie.reuters.com@reuters.net; email: caryn.trokie@reuters.com; Tel: 646-223-6330))