Fitch gives BB+ to RusHydro LPNs

Fitch Ratings said it assigned RusHydro Capital Markets DAC's rouble-denominated loan participation notes a BB+(EXP) expected senior unsecured rating, in line with PJSC RusHydro's long-term issuer default rating of BB+/stable.

RusHydro Capital Markets is an orphan special purpose financing vehicle. The LPNs will be issued on a limited recourse basis for the sole purpose of funding a loan to RusHydro. The noteholders will rely solely and exclusively on RusHydro's credit and financial standing for the payment of obligations under the LPNs.

RusHydro plans to use the net proceeds for general corporate purposes, including the refinancing of upcoming debt maturities and capex funding.

Fitch said BB+ issuer default rating reflects its view that RusHydro has improved its credit metrics and will maintain them at levels commensurate with the current rating.

The agency forecasts RusHydro's funds from operations (FFO)-adjusted net leverage will be below 3 times during 2017-2021 due to strong financial and operational performance in 2016 and within the rating horizon.

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