S&P: VimpelCom watch continues

Standard & Poor's said it will keep the BB+ long-term and related debt ratings on Vimpel-Communications JSC on CreditWatch with negative implications, where they were placed in Octobter.

The extension of the CreditWatch placement follows news that owner VimpelCom Ltd. plans to merge with Wind Telecom, S&P said.

Due to the uncertainties related to the merger, the agency said it hasn't commented on the exact implications of the merger and disavows the communication made by management on the companies' website that stated the expected rating and outlook for Vimpel-Communications and VimpelCom is BB with a negative view.

S&P said it hasn't arrived at any such expected rating or outlook and believes that was solely Vimplecom Ltd.'s view.

The rating on Vimpel-Communications reflects a view of its aggressive growth orientation, reduced financial flexibility and intense competition in the Russian mobile telephony market, the agency said.

The rating is supported by its sound market position, robust profitability and strong cash generation, S&P said.

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