Annual Report 2015



Credit Ratings

As at 31 December 2015, the following credit ratings were assigned to the Company by international rating agencies:

Rating type Rating Rating outlook Last review date
Standard & Poor's
Foreign currency long-term rating BB+ Negative 04 February 2015
Local currency long-term rating BBB- Negative 04 February 2015
Long-term corporate credit rating Ba1 Stable 04 December 2015

In February 2015, Standard & Poor’s (S&P) confirmed MegaFon’s long-term local currency rating and changed its long-term foreign currency rating. S&P affirmed its ‘BBB-’ local currency rating on the Company, noting that MegaFon’s profitability was above the industry average and the Company stood out for its well-balanced borrowing policy, sufficient liquidity and ability to service its debts. At the same time, S&P downgraded MegaFon’s foreign currency rating to ‘BB+’, following its assessment of risks associated with foreign currency payments.

In February 2015, Moody’s downgraded Russia’s sovereign credit rating to ‘Ba1’, while setting the country ceiling for ratings of Russian companies at ‘Ba1’. Following this revision, Moody’s changed MegaFon’s long-term corporate family rating to the said level, with a negative outlook. In December 2015, Moody’s changed MegaFon’s outlook to stable following its revision of Russia’s government bond rating outlook.