Fitch rates Kreditprombank note B-

Fitch Ratings said it assigned HSBC Bank plc's upcoming issue of limited recourse loan participation notes an expected long-term rating of B- with a recovery rating of RR4. The notes are to be used solely for financing a loan to Kreditprombank, which is rated issuer default B-, short-term B, individual D/E, support 5 and national long-term BBB-(ukr).

The outlook is stable.

HSBC Bank will only pay noteholders principal and interest received from Kreditprombank. Its claims under the loan agreement will rank at least equally with the claims of other senior unsecured creditors of Kreditprombank, save those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application, the agency said.

Fitch said any over-collateralization would be assessed by the agency for any potential impact on unsecured creditors. Kreditprombank must ensure full compliance with capital adequacy requirements of the National Bank of Ukraine, with respective threshold currently being at 10%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.