S&P rates Home Credit and Finance notes B-

Standard & Poor's said it assigned its B- senior unsecured debt rating to the proposed loan participation notes to be issued by Eurasia Capital SA (not rated).

The notes will be issued on a limited recourse basis for the sole purpose of financing a fiduciary deposit with J.P. Morgan Bank Luxemburg SA for the sole purpose of financing a loan to Home Credit and Finance Bank LLC (B-/stable/C).

S&P said the ratings on Home Credit and Finance Bank reflect the bank's short track record in the underdeveloped and high-risk but fast growing consumer finance market in Russia, where the legal environment is weak and credit procedures are untested.

In addition, S&P said the bank's financial profile is burdened by low profitability and a lack of funding diversification.

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