Fitch: Saint-Petersburg Telecom bonds BB+

Fitch Ratings said it assigned a final BB+ long-term senior unsecured rating to three domestic bonds issued by OJSC Saint-Petersburg Telecom, a subsidiary of Tele2 Russia Holding AB.

The agency also said it assigned AA(rus) national long-term ratings to the bonds.

The final ratings reflect final documentation conforming to draft information already received, Fitch said.

The three bonds are: a RUB 5 billion series 01 bond with a stated maturity of 10 years and an attached put option after five years; a RUB 5 billion series 02 bond with a stated maturity of 10 years and an attached put option after five years; and a RUB 3 billion series 03 bond with a stated maturity of 10 years and an attached put option after five years.

The bondholders will benefit from an irrevocable undertaking by Tele2 Russia Holding and Tele2 Financial Services AB, a treasury company for Tele2R, which makes this instrument effectively recourse to the Tele2R group, Fitch said.

Tele2R is the fourth-largest Russian mobile company by subscriber base. It is a successful niche mobile player with a strong financial profile, the agency said.

But it is disadvantaged compared with its peers in terms of 4G/LTE options, a deficiency that makes it less strategically important for the Tele2 group, Fitch said.

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