S&P lowers VimpelCom to stable

Standard & Poor's said it revised the outlook on VimpelCom Ltd. to stable from positive.

The company’s BB long-term foreign- and local-currency corporate credit ratings were affirmed.

S&P also said it affirmed the BB ratings on the company's senior unsecured debt.

The closure of a deal on a merger of VimpelCom's fully owned Italian subsidiary Wind Telecomunicazioni SpA with CK Hutchison's subsidiary 3 Italia SpA through a 50-50 joint venture between is now less likely to result in an upgrade. This led to the stable outlook, the agency said.

VimpelCom's significant hard-currency debt exposure and weaker domestic currencies in Russia and Ukraine have negatively affected its operating performance, S&P said.

The outlook revision also reflects the uncertainty related to the potential exit of Telenor, VimpelCom's second-largest shareholder, holding 43% of voting shares, the agency added.

This exit could create uncertainty as to VimpelCom's financial policy and governance, S&P said.

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