Fitch rates Tele2 bonds BB+

Fitch Ratings said it assigned OJSC Saint-Petersburg Telecom, a subsidiary of Tele2 Russia Holding AB, bonds a BB+ long-term senior unsecured rating and AA(rus) national long-term ratings.

The company will issue RUB 3 billion of series 04 bonds due in 10 years and RUB 4 billion of series 05 bonds due in 10 years, both with an attached investors' put option at year two.

Tele2 Russia is a successful niche mobile player with a strong financial profile, the agency said.

The company, however, lacks 3G licenses and is disadvantaged compared with its peers in terms of 4G/LTE options, which Fitch said makes it less strategically important for the Tele2 group.

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