Fitch rate Karelia bonds BB-

Fitch Ratings said it assigned the Russian Republic of Karelia's RUB 1 billion domestic bond issue due Nov. 30, 2016 a final long-term local-currency rating of BB- and a final national long-term rating of A+(rus).

The region has long-term local- and foreign-currency ratings of BB- and a national long-term rating of A+(rus). The region's short-term foreign-currency rating is B.

The outlook for the long-term ratings is stable.

The bond issue has an amortizing structure and a fixed-rate step-down coupon. The first four coupon rates were set on Dec. 2 at 9.99%. The fifth to eighth coupon rates have been set at 9.74%. The ninth and 10th coupon rates have been set at 9.49%.

Proceeds will be used to refinance maturing debt and to fund capital expenditure.

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