Fitch rates Novatek bonds BBB-

Fitch Ratings said it assigned OAO Novatek's RUB 10 billion domestic stock exchange bonds due 2013 a final senior unsecured local-currency senior unsecured rating of BBB- and a final national senior unsecured rating of AA+(rus).

The company has stated that all of the group's material debt is raised directly by the holding company Novatek, rather than by its subsidiaries, Fitch said.

As Novatek currently has low leverage, this form of contractual subordination is not significant enough for the agency to assign a lower senior unsecured rating to the holding company's exchange bonds, compared with its bank debt, Fitch said.

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