Fitch cuts Sinek IDR, Edel Capital notes

Fitch Ratings said it downgraded OAO Svyazinvestneftekhim's (Sinek) long-term foreign and local currency issuer default ratings to BBB- from BBB.

The short-term foreign currency issuer default rating was affirmed at F3.

The outlook is negative.

The agency also downgraded Edel Capital SA’s $250 million loan participation notes due 2015 foreign currency senior unsecured rating to BBB- from BBB. Sinek and the Republic of Tatarstan (BBB-/negative) guarantee the notes.

The actions follow the Jan. 16 downgrade of the Tatarstan.

Sinek is the Tatarstan government's investment holding company. Its ratings are linked to the sub-sovereign rating of Tatarstan, given the latter significant influence over the company. Direct support from the republic includes Tatarstan government's explicit RUB 13 billion guarantee of the $250 million notes (on-lent to Sinek), a RUB 1 billion ($16.6 million) loan as well as significant contributions in kind historically made by Tatarstan.

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