Fitch rates Caspian Holding BBB

Fitch Ratings said it assigned BBB issuer default ratings to special purpose vehicle Caspian Group BV, its direct 100% owner Overseas Capital BB and the latter's direct 100% owner, Caspian Holding BV.

The outlook is stable.

The special purpose vehicles were established to facilitate the purchase of a stake in Kazakhstan-based Bank Caspian. The special purpose vehicles will ultimately be owned by Baring Vostok Capital Partners and Vyacheslav Kim, who owns a 49% stake in Bank Caspian. Caspian Group plans to acquire a direct ownership of at least 93% of Bank Caspian before the end of the year, subject to regulatory approvals.

The agency said the ratings reflect the guarantees issued by Russia's Vneshtorgbank in respect to the debt of each special purpose vehicle and the current and expected future absence of, or negligible amounts of, debt on the balance sheets of the special purpose vehicles. Under the terms of both the guarantees and their own constitutional documents, the special purpose vehicles undertake not to incur any financial debt without the prior consent of Vneshtorgbank.

In Fitch's view, it is highly unlikely that Vneshtorgbank would give such consent to any of the special purpose vehicles. Vneshtorgbank and Baring Vostok Capital Partners have also made representations to Fitch that during the three-year period to October 2009 they do not intend to terminate the guarantees, according to the agency.

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