S&P rates Kyiv notes BB-

Standard & Poor's said it assigned a BB- long-term foreign-currency senior unsecured debt rating to the proposed $250 million loan participation notes to be issued by Credit Suisse International (AA-/positive/A-1+) to fund a loan to the city of Kyiv (BB-/negative).

The notes mature in five years and are expected to be issued on Nov. 26. Credit Suisse will not provide any payment guarantees, and debt servicing on the notes will depend solely on Kyiv's ability to repay the loan, according to the agency.

Proceeds will be used for capital investments in public infrastructure and for refinancing debt obligations.

The rating on Kyiv (foreign-currency BB-/negative/B; local-currency BB/negative/B; Ukraine national scale uaAA) reflects limited fiscal flexibility, expenditure pressures, foreign exchange risk related to bullet debt repayments and the need for improving management sophistication and transparency, S&P said.

The rating is supported by the city's position as the economic, financial and cultural center of Ukraine, which results in growing budget revenue and sound liquidity levels, the agency said.

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