Fitch rates VEON, notes BB-

Fitch Ratings said it rated VEON Ltd. and its senior unsecured notes BB-. The recovery rating on the notes, two series issued in U.S. dollars and three series in Russian rubles, is RR4; they were issued through VEON Holdings BV. The outlook is negative.

“The ratings reflect VEON's well-diversified revenue base across six markets and market-share leadership. It has low leverage following its exit from Russia and plans for further mobile tower infrastructure sales, which could support further deleveraging.

“Rating constraints are a weak operating environment and foreign-exchange (FX) risks, including a mismatch between debt and cash flow generation with inherent transfer and convertibility (T&C) risks in some of its largest markets,” Fitch said in a press release.

“The negative outlook reflects that just under half of VEON's debt is set to mature in the next 18 months, increasing execution risks,” Fitch said.

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