Fitch upgrades Sinek note to BB+

Fitch Ratings said it upgraded to BB+ from BB Edel Capital SA's $25 million issue loan participation notes due 2015, which are guaranteed by OJSC Svyazinvestneftekhim (Sinek) and the Republic of Tatarstan.

The upgrade of notes follows the upgrade of Tatarstan's issuer default rating to BB+ from BB. Tatarstan has issued a guarantee to the amount of 13 billion rubles to support the issue. Due to this legally binding and unconditional guarantee, Fitch aligns Edel's issue rating with the republic's issuer default rating.

The agency said it also takes comfort from the fact that under the terms of the loan participation notes agreement, Sinek is required to hold one semi-annual interest payment of $9.6 million as collateral at Dresdner bank until August 2015.

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