Moody's lifts VEON view to positive

Moody's Investors Service said it changed the outlook of VEON Ltd.'s to positive from stable and affirmed its Ba2 corporate family rating and Ba2-PD probability of default rating.

Moody's also said it affirmed the Ba2 issuer rating of VimpelCom PJSC, VEON's operating subsidiary, along with the Ba2 senior unsecured ratings of the outstanding bond instruments issued by VEON Holdings BV, VEON's 100% indirectly owned subsidiary, and the Ba2 senior unsecured ratings of VIP Finance Ireland Ltd.

Moody's also said it affirmed the Ba2 senior unsecured rating of the outstanding bonds of GTH Finance BV, guaranteed by VEON Holdings.

The outlook revision recognizes an improvement in VEON's leverage and reduced exposure to foreign-currency risk, which stems from the currency mismatch between its predominantly hard-currency debt and local-currency revenue in those emerging markets where it operates, the agency said.

This is on the back of a sizable reduction in VEON's debt in 2018, Moody's said.

The agency said it expects VEON's strengthened financial profile to sustain due to VEON's continued solid operating performance and strong market position among the largest telecoms companies in several emerging markets with good growth potential.

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