“Fitch” Improves Outlook on “Vodafone Ukraine” Bonds

Wednesday, August 25, 2021
2 MIN
“Fitch” Improves Outlook on “Vodafone Ukraine” Bonds

The international rating agency "Fitch Ratings" changed the forecast of PrJSC "VF-Ukraine" from "stable" to "positive" and affirmed all ratings

These changes follow the change in the outlook for Ukraine's sovereign rating to "positive" from "stable" on August 6, 2021.

VF-Ukraine's ratings are capped by the country ceiling in Ukraine due to the telecommunications company's strong dependence on the country's economy.

Earlier it was reported that earlier the Antimonopoly Committee of Ukraine allowed PrJSC VF Ukraine to concentrate more than 50% of the telecom operator Vega (Farlep-Invest).

Vodafone Ukraine is the second-largest mobile operator in Ukraine. In 2020, the company reduced its net profit by 2,1 times compared to 2019 - to $44,4 million.

In 2019, NEQSOL Holding Group through Telco Solutions and Investments, controlled by the Azerbaijani operator Bakcell, signed an agreement with MTS PJSC to purchase its telecommunications business in Ukraine. The deal to purchase Vodafone Ukraine was closed at the end of December 2019 with J.P. Morgan and RBI, the price was $734 million, including a deferred payment of about $84 million.

National telecom operator Vega offers complex modern solutions in the field of fixed telephony, broadband Internet access, and data transmission. It is part of the telecommunications sector of the SCM group of Rinat Akhmetov.

Vega is present in 22 regions of Ukraine. Operational management of the Vega telecommunications group is carried out by PJSC Farlep-Invest. The general director of the company is Murat Chinar.

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