S&P rates VimpelCom loans BB+, lifts Golden Telecom

Standard & Poor's said it affirmed the BB+ long-term corporate credit rating on Vimpel-Communications (VimpelCom), following the successful tender offer for Golden Telecom Inc., in which VimpelCom acquired about 90.5% of shares.

S&P assigned BB+ ratings to VimpelCom's $2 billion senior unsecured syndicated loan and $1.5 billion bridge loan, which have three-year and one-year maturities, respectively.

The agency upgraded the long-term corporate credit rating on Golden Telecom to BB+ from BB, equalizing the rating with VimpelCom's.

The outlook is stable.

Ratings were removed from CreditWatch, where they were placed on Dec. 4, following VimpelCom's announcement that it was been in talks to acquire Golden Telecom.

Ratings were affirmed following analysis of the impact of the acquisition on the company's financial and business risk profiles, as well as the extent of Golden Telecom's possible integration into VimpelCom's business, including the synergetic effects of the integration, according to the agency.

Following the deal, VimpelCom's debt-to-EBITDA ratio will rise to about 1.9 times.

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