Fitch rates Acron bond B+

Fitch Ratings said it assigned JSC Acron's 10-year RUB 7.5 billion domestic bond issue a senior unsecured rating of B+ and a recovery rating of RR4.

Acron has issued the notes in two tranches of RUB 3.75 billion, which are the company's fourth and fifth issues on the domestic bond market, Fitch said.

They are structured as unsecured and unsubordinated obligations of the issuer and do not contain any financial or other covenants, the agency said. They are subject to a bondholder put option at par after three years and carry a 7.95% coupon rate for the first six semi-annual coupons, Fitch said.

The proceeds will be used to refinance debt and fund capital expenditure requirements, the agency said.

This is in line with expectations and with Acron's stated financing strategy, Fitch said.

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