S&P rates Aries notes

Standard & Poor's said it assigned its preliminary BB+ credit ratings to the fixed- and floating-rate series A, B, and C credit-linked notes to be issued by Aries Vermögensverwaltungs GmbH. The issuer is a newly formed special purpose entity domiciled in the Federal Republic of Germany.

"The euro- and U.S. dollar-denominated notes issued by Aries will be credit linked to certain obligations of the Russian Federation, the first time Paris Club debt has been securitized in this way," said S&P credit analyst Hervé-Pierre Flammier.

To repay the notes, the issuer will receive certain amortization payments under a pre-established schedule from the Federal Republic of Germany under a participation agreement, Flammier said.

"These payments will be passed on to the asset swap counterparty, KfW, under a reinvestment agreement. In turn, and subject to it receiving these payments from the issuer, KfW will pay to the issuer interest and principal as and when due under the terms and conditions of the notes," he added.

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