Fitch rates Sberbank notes BB+

Fitch Ratings said it assigned UBS (Luxembourg) SA's planned issue of loan participation notes due 2015 an expected long-term BB+ rating.

Receipts from the notes will finance a subordinated loan to Russia's Sberbank. Sberbank is rated long-term BBB-, short-term F3, individual C/D, and support 2.

The notes are to rank at least equally with the claims of other subordinated creditors of Sberbank. The tenor of the notes will be 10 years. The interest rate will be fixed, with a step-up after the fifth year. Sberbank has a one-time call option to prepay the subordinated loan at the end of the fifth year, which, if exercised, would cause the notes to be repaid at that time. Interest payments on the loan and the notes are not deferrable.

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