Fitch: Bank Ochrony bonds BBB

Fitch Ratings said it assigned Bank Ochrony Srodowiska's forthcoming eurobond issue an expected rating of BBB in line with the bank's long-term foreign-currency issuer default rating.

According to the planned bond issue's preliminary prospectus, the notes will be senior unsecured and will rank pari passu with all of the bank's other current and future senior unsecured obligations, the agency said. The total amount and final maturity of the issue are yet to be determined.

The issue is planned for late April and will be conducted through a fully-owned subsidiary incorporated with limited liability in Sweden.

Proceeds will be used for the bank's growth and to a large extent to refinance a significant outflow of deposits driven by legislative changes in Poland.

The rating considers that the bank's liquidity has strengthened year-to-date due to its growing deposit base and additional standby facility, the agency said.

The bank has BBB long-term and F3 short-term foreign-currency issuer default ratings with a stable outlook, Fitch said.

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