S&P upgrades MegaFon

S&P said it raised its long-term foreign currency corporate credit rating on MegaFon PJSC to BBB- from BB+ and affirmed the BBB- long-term local currency corporate credit rating.

The outlook is stable.

The agency also raised the rating on MegaFon's $1.5 billion medium-term senior unsecured note program to BBB- from BB+ and affirmed the BBB- rating on its RUB 10 billion senior unsecured domestic bonds.

S&P said the upgrade mirrors the raising of its transfer and convertibility assessment for Russia to BBB- from BB+, which reflects, among other things, Russia's track record of not restricting access to foreign exchange during previous economic crises.

“Our foreign currency rating on Russia remains at BB+, but we believe that the rating on MegaFon can exceed it because, in our view, MegaFon would be able to meet its obligations in a sovereign foreign currency stress scenario,” the agency said in a news release.

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