Fitch rates Alliance Oil B

Fitch Ratings said it assigned Alliance Oil Co. Ltd.'s debut five-year $350 million 9.875% eurobond issue a final senior unsecured foreign-currency rating of B and a recovery rating of RR4. The company has a long-term foreign- and local-currency issuer default ratings of B, short-term foreign- and local-currency issuer default rating of B and a national long-term rating of BBB(rus).

The outlook is stable.

The company said in February that it would not proceed with a proposed bond offering, but then reversed that decision.

Senior unsecured debt holders are not viewed as being negatively impacted by either the lack of an upstream guarantee by the refining operating company to the holding company, Fitch said, or by a pledge of the refining company's assets to ring-fenced secured lenders.

The agency said it believes sufficient assets are in place elsewhere in the group to achieve average recovery of principal in the event of default.

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