S&P boosts VimpelCom

Standard & Poor's said it raised its long-term corporate credit rating on Vimpel-Communications (JSC) to BB+ from BB, reflecting the company's continuing strong performance.

The outlook is stable.

S&P noted that the upgrade reflects VimpelCom's continuing strong business performance, the remaining potential for further mobile market growth in Russia and the Commonwealth of Independent States, the company's favorable profitability trend and its improving financial profile, with robust cash flow generation and the ability to manage financial risks in a dynamic and challenging environment.

According to the agency, the ratings are limited by the company's exposure to intense competition in its key markets, combined with increasing mobile saturation and declining growth in Russia, VimpelCom's orientation toward growth and further geographical expansion and the uncertainty of the evolving economic and administrative environments in Russia and the CIS.

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