Moody's confirms Yukos

Moody's Investors Service confirmed Yukos Oil Co. including its senior unsecured debt at Ba2. The outlook remains stable.

Moody's comments come after its upgrade of the foreign currency sovereign rating of the Russian Federation to Baa3 from Ba2.

During the course of 2003, Yukos has made significant payments of cash to its own shareholders and the owners of Sibneft which it has now acquired. The company has taken on a considerable amount of debt, much of it secured including the recently arranged $2.6 billion export-secured bank facilities.

Moreover, the company may decide to support its new subsidiary's own substantial debt.

As a result, potential unsecured bondholders of Yukos would be subordinated both structurally and legally to other existing and future debt.

Consequently, in spite of the announcement that Moody's has raised the foreign currency rating of the Russian Federation to Baa3, the agency confirmed Yukos's issuer rating at the existing level of Ba2.

S&P rates Banco de Oro notes B

Standard & Poor's assigned a B rating to Banco de Oro Universal Bank's $150 million senior unsecured debt issue due 2008. The outlook is stable. The rating is based on public information.

S&P said the ratings reflect the bank's weak asset quality amid the difficult economic environment in the Philippines. However, this is moderated by Banco de Oro's satisfactory capitalization and stable profitability.

Banco de Oro is the Philippines' ninth-largest private domestic commercial bank by assets. Its capitalization, as measured by its adjusted common equity-to-assets ratio of 11.3%, compares favorably among its domestic peers, Moody's said. The quality of capital is also adequate, with about 99% of its absolute capital base consisting of share capital and retained earnings.

Asset quality is weak by international standards, although it has improved in 2002. This is evident from its ratio of nonperforming assets to gross loans at 16.9%, compared with 21.7% in 2001. Nevertheless, the NPA ratio compares favorably against the industry average of 32%.

S&P rates ICICI Bank notes BB

Standard & Poor's assigned a BB rating to ICICI Bank Ltd.'s proposed $300 million senior unsecured notes due 2008.

S&P puts IFCT on watch

Standard & Poor's put Industrial Finance Corp. of Thailand on CreditWatch negative including its $200 million 7.375% bonds due 2007 and ¥7 billion 3.02% bonds due 2007 at BB+.

S&P said the CreditWatch follows a statement from the Thai Ministry of Finance that IFCT's merger with BankThai Public Co. Ltd. is expected to be finalized by the end of the year. The transaction depends on Thai Cabinet approval for the amendment of relevant laws to allow the two institutions to merge.

Although the merger is likely to provide IFCT with access to retail deposits, S&P said it has concerns about the impact on IFCT's capitalization and asset quality considering BankThai's legacy of problematic loans. In addition, the merger could mark a change in IFCT's strategic direction.

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