S&P rates VEON bonds BB

S&P said it affirmed its BB long-term corporate credit rating on VEON Ltd. (previously VimpelCom Ltd.). The outlook is stable.

S&P has also affirmed the BB long-term corporate credit rating on the Netherlands-registered VimpelCom Holdings BV and on Russia-registered Vimpel-Communications PJSC, which are core subsidiaries of VEON. The outlook on both entities is stable.

S&P affirmed the BB issue rating on the group's senior unsecured debt and the B+ rating on the structurally subordinated debt issued by GTH Finance BV and guaranteed by VimpelCom Holdings.

At the same time, S&P assigned a BB issue rating to the proposed senior unsecured notes to be issued by VimpelCom Holdings to finance an any-and-all tender offer on the existing VimpelCom Holdings and PJSC VimpelCom bonds.

“The affirmation reflects our expectation that VEON will demonstrate stable operating performance in 2017-2019, with moderate organic growth in revenues potentially offset by exchange rate volatility and margin pressure, in particular, in Russia and Algeria,” S&P said in a news release.

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