Fitch gives Eurasia Drilling bonds BB/AA-(rus)

Fitch Ratings said it assigned Burovoya Kompaniya Eurasia's (BKE) prospective rouble-denominated bonds an expected local currency senior unsecured rating of BB(EXP) and an expected national senior unsecured rating of AA-(rus)(EXP).

The planned notes will be issued under BKE's RUB 100 billion bond issuance program.

BKE is the indirectly wholly owned operating subsidiary of Eurasia Drilling Co. Ltd. (BB/negative) and is Eurasia Drilling’s principal onshore drilling service provider in Russia. BKE's customers include PJSC Lukoil (BBB-/negative), PJSC Gazprom Neft (GPN, BBB-/negative) and others.

The agency expects Eurasia Drilling to provide BKE with a legally binding irrevocable offer to purchase the prospective bonds in case of certain events of default. According to its audited 2015 IFRS accounts, BKE had revenues and EBITDA of $998 million and $259 million, or 57% and 56% of Eurasia Drilling’s consolidated numbers for the period, respectively.

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