NEW YORK (TheStreet) -- VimpelCom  (VIP) stock is declining by 2.30% to $3.40 in mid-morning trading on Friday, as former CFO Henk van Dalen steps down from the supervisory board of a Dutch hospital amid an investigation into VimpelCom.

van Dalen, who was CFO of VimpelCom from 2010 to 2013, is temporarily withdrawing from the board of the Erasmus University Medical Center, based in Rotterdam, Netherlands, according to a statement by the hospital.

VimpelCom is being investigated in Norway, the Netherlands, Switzerland and the U.S. for allegedly making payments to get a network operating license in Uzbekistan, Reuters reports.

Norwegian multinational telecommunications company Telenor (TELNY), which has a 33% stake in VimpelCom, on Wednesday announced it has suspended two executives due to the investigation, Reuters adds.

Based in Amsterdam, VimpelCom is a global provider of telecommunications services in 14 countries.

Separately, TheStreet Ratings team rates VIMPELCOM LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate VIMPELCOM LTD (VIP) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is very high at 3.79 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, VIP maintains a poor quick ratio of 0.72, which illustrates the inability to avoid short-term cash problems.
  • VIP's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 41.67%, which is also worse than the performance of the S&P 500 Index. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Net operating cash flow has decreased to $801.00 million or 27.31% when compared to the same quarter last year. Despite a decrease in cash flow VIMPELCOM LTD is still fairing well by exceeding its industry average cash flow growth rate of -52.55%.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Wireless Telecommunication Services industry and the overall market, VIMPELCOM LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The revenue fell significantly faster than the industry average of 13.3%. Since the same quarter one year prior, revenues fell by 25.8%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • You can view the full analysis from the report here: VIP

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.