Fitch: Georgian Oil notes BB-

Fitch Ratings said it assigned an expected rating of BB- to JSC Georgian Oil and Gas Corp.'s debut $250 million senior unsecured notes due 2017.

The proceeds from the bond issue will primarily be used to fund the company's capital expenditure plans, Fitch said.

The proposed bond features a number of protective covenants, a bondholder put option in the event of a change of control, a negative pledge and a restriction on the incurrence of new debt if net debt-to-EBITDA exceeds 3.5x, the agency said.

The company has long-term foreign- and local-currency issuer default ratings of BB-, short-term foreign- and local-currency issuer default ratings of B and foreign-currency senior unsecured rating of BB-.

The ratings are based upon the linkage of the company to Georgia's sovereign rating, Fitch said.

Its role as national energy company will remain critical to the Georgian economy given the country's position at a crossroads of supply between the landlocked Caspian basin and western markets, the agency said.

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