Fitch: Ukreximbank notes B

Fitch Ratings said it assigned an expected long-term rating of B to Biz Finance plc's $100 million 8¾% upcoming tap issue of fixed-rate limited recourse notes with a recovery rating of RR4.

The notes will be consolidated to form a single series with the outstanding $500 million 8¾% notes due in January 2018.

The notes are to be used solely for financing a loan to JSC The State Export-Import Bank of Ukraine (Ukreximbank), which has a long-term issuer default rating of B, senior unsecured debt rating of B with a recovery rating of RR4, subordinated debt rating of CCC and a recovery rating of RR5, short-term issuer default rating of B, viability rating of B and national long-term rating of AA-(ukr).

Biz Finance will only pay noteholders amounts (principal and interest) received from Ukreximbank under the loan agreement. The claims under the loan agreement will rank at least equally with the claims of other senior unsecured and unsubordinated creditors of Ukreximbank, Fitch said.

The rating on the notes corresponds to Ukreximbank's long-term foreign-currency issuer default rating. The issue's recovery rating of RR4 reflects average recovery prospects for bondholders in case of default, the agency said.

The ratings are underpinned by potential support from the Ukrainian authorities, if needed, based on the bank's state ownership, policy role, high systemic importance and track record of capital support for the bank under different governments, Fitch said.

The ratings also take into consideration the ability of the Ukrainian authorities to provide such support, which remains limited, the agency added.

© 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.