Fitch says affirms VEON at B+, withdraws ratings

MOSCOW, Jul 6 (PRIME) -- Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) and senior unsecured rating of VEON, the sole owner of Russian mobile operator VimpelCom, at B+ and withdrawn them for commercial purposes, the agency said on Wednesday in a statement.

The outlook on the IDR is Stable, the agency said.

“The rating reflects weak Russian and Ukrainian operating environments following Fitch’s downgrades of the Country Ceiling of Russia to B-, before being withdrawn, and Ukraine’s Country Ceiling to B-,” the statement read.

“With limited access to cash in these countries, the group’s credit profile is primarily shaped by operations in other markets. Russia and Ukraine generated 62% of the group’s reported 2021 EBITDA. Analytical deconsolidation of operations in Russia and Ukraine leads to a significant increase in leverage to around 3.5x net debt/EBITDA at end-2022.”

After the withdrawal, Fitch said that it will no longer provide ratings or analytical coverage of VEON.

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