Fitch Assigns Probusinessbank's Eurobond Expected 'B-(exp)' Rtg
MOSCOW. June 8 (Interfax) - On Wednesday, Fitch Rating assigned PBB LPN Issuance Limited's proposed issue of senior unsecured notes an expected Long-term rating of 'B-(exp)' and a Recovery Rating of 'RR4'.
The agency said in a statement: "The final rating is contingent upon the receipt of final documents conforming materially to information already received. The proceeds from the issue will be used to finance a loan to Russia-based Probusinessbank (PBB), rated Long-term Issuer Default (IDR) 'B-' with Stable Outlook, Short-term IDR 'B', Individual 'D', Support '5' and National Long-term 'BB-(rus)' with Stable Outlook.
"The notes are to be issued under the loan participation programme established in July 2005 and rated Long-term 'B-' for issues with initial maturities of more than one year and Short-term 'B' for issues with maturities of up to one year (see Fitch's announcement on 22 February 2006, available on www.fitchresearch.com)
"The programme limit was increased to USD750m in March 2007, following an increase to USD200m in November 2006 from the original limit of USD100m. There have been no other significant changes to the terms and conditions of the issues under the programme.
"The issuer's claims under the loan agreement will rank at least equally with the claims of PBB's other senior unsecured creditors, save those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application.
"PBB is a medium-sized Russian bank, with consolidated assets of RUB107.5bn at end-2010. Its activities are concentrated on SME and retail lending."