Fitch rates Eurasia Drilling notes BB

Fitch Ratings said it assigned an expected foreign-currency senior unsecured BB rating to EDC Finance Ltd.'s dollar-denominated guaranteed notes.

EDC Finance is Eurasia Drilling Co. Ltd.'s wholly-owned subsidiary domiciled in Ireland. The notes are guaranteed by Eurasia Drilling, as well as its two largest operating subsidiaries, OOO Burovoya Kompaniya Eurasia and OOO SGK-Burenie, together accounting for more than 80% of its consolidated revenue and EBITDA in 2012.

Eurasia Drilling has a long-term issuer default rating of BB, short-term issuer default rating of B, long-term local-currency issuer default rating of BB, short-term local-currency issuer default rating of B, national long-term rating of AA-(rus), senior unsecured rating of BB and national senior unsecured rating of AA-(rus).

OOO Burovaya Kompaniya Eurasia has a senior unsecured rating of BB.

The ratings reflect the company's position as the largest oilfield drilling company in Russia with a strong operational and financial profile, Fitch said.

The agency said it believes that Eurasia Drilling will continue to benefit from a favorable business environment as high oil prices enable Russian oil companies to finance their upstream capital expenditure budgets.

High customer concentration and low geographical diversification beyond Russia limit the company's ratings, Fitch said.

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