Fitch assigns BB+ rating to Saint-Petersburg Telecom bonds

Fitch Ratings said it assigned a final BB+ long-term senior rating and a final AA(rus) national long-term rating to OJSC Saint-Petersburg Telecom's RUB 6 billion of series-07 bonds due November 2021, which have a put option in year three.

The issuer is a subsidiary of Tele2 Russia Holding AB (BB+/AA(rus)). Bondholders benefit from an irrevocable undertaking by the parent company and Tele2 Financial Services AB.

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

However, the company does not have 3G licenses and is disadvantaged compared with its peers in terms of 4G/LTE options, the agency said. In Fitch's view, this deficiency makes Tele2 Russia less strategically important for the Tele2 group.

© 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.