Fitch rates Avangardco notes B

Fitch Ratings said it assigned Avangardco Investments Public Ltd.'s planned $250 million to $300 million notes an expected foreign-currency senior unsecured rating of B and an expected recovery rating of RR4.

Avangardco has long-term foreign- and local-currency issuer default ratings of B and a national long-term rating of A+(ukr).

The outlook is stable.

The ratings are contingent upon the receipt of final documents.

The company said it will use the bond proceeds to repay up to $170 million of existing short-term secured debt and to boost the group's cash liquidity.

The company will be looking to support future liquidity by procuring new facilities from top Ukrainian banks to fund grain purchase, Fitch said.

Its strategy envisages that future cash will be deposited with leading Ukrainian banks, including major Ukrainian subsidiaries of international banks, further reducing its reliance on Finansova Initsiatyva, the agency said.

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