Moody's upgrades VimpelCom

Moody's Investors Service said it upgraded the corporate family and bond ratings of OJSC Vimpel Communications to Ba2 from Ba3.

The outlook is stable.

The agency said the upgrade reflects the company's continued robust operational and financial performance, which resulted in a free cash flow position in the first nine months of 2006; its position as one of the leading mobile operators in Russia and Kazakhstan and its presence in a number of other countries in the Commonwealth of Independent States; the company's ability to retain strong profitability despite the introduction of "calling party pays" on July 1, 2006; and its modest total debt-to-reported EBITDA ratio of 1x.

The ratings also take into account an ongoing shareholder dispute, uncertainty associated with a potential award of 3G license and its capex requirements, VimpelCom's publicly stated intentions to continue its external growth through acquisitions in the Commonwealth of Independent States and a continued modest rise in absolute levels of debt over the next 12 months, Moody's said.

© 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.