Fitch revises VEON to positive

Fitch Ratings said it revised VEON Ltd.'s outlook to positive from stable and affirmed its long-term issuer default rating at BB+.

“VEON is a geographically diversified mobile-focused telecoms operator,” Fitch said in a news release.

“Russian operations are a core cash-generating unit for the group, responsible for approximately half of the group's revenue and EBITDA in 2017, with less-significant cash flows from Global Telecom Holding SAE (GTH), a 58%-owned subsidiary with operations in Algeria, Pakistan and Bangladesh.”

According to the agency, VEON recently announced the sale of its 50% stake in Wind Tre SpA, its joint venture with CK Hutchison in Italy, to the latter company for €2.45 billion, subject to regulatory clearance, and its proposed buy-out of GTH's operations in Bangladesh and Pakistan.

VEON faces a significant currency mismatch with approximately 70% of its debt denominated in dollars and euros, resulting in tighter leverage rating triggers compared with peers, Fitch explained.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.