Moody's assigns Ba2 to SUEK notes

Moody's Investors Service said it assigned a Ba2 rating to the planned backed senior unsecured notes to be sold by SUEK Securities DAC. SUEK Securities is a designated activity company incorporated under the laws of Ireland, and a wholly owned subsidiary of SUEK.

The backed senior unsecured notes will be issued for the sole purpose of financing a loan to SUEK, which is one of the operating companies of SUEK group and is the ultimate parent company of the group. SUEK will use the proceeds for refinancing its indebtedness. The backed notes constitute unsecured obligations of SUEK and are guaranteed by SUEK and its operating subsidiaries.

“The Ba2 rating of the proposed backed senior unsecured notes is at the same level as SUEK's corporate family rating, which reflects Moody's view that the notes will rank pari passu with other unsecured and unsubordinated obligations of SUEK group. The group's debt comprises primarily pre-export financing facilities raised at the level of its subsidiary SUEK Ltd. and guaranteed by its other subsidiaries; unsecured bank loans, some of which are guaranteed; as well as ruble-denominated bonds issued by its subsidiary SUEK Finance. Therefore, there are no material debt instruments that are senior or subordinated to the obligation of SUEK Securities DAC,” the agency said in a press release.

The outlook is stable.

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