Fitch rates Baltic Leasing bonds BB-

Fitch Ratings said it assigned an expected long-term rating of BB- to Baltic Leasing LLC's upcoming issue of RUB 4 billion fixed-rate unsecured amortizing bonds series BO-P01.

The bonds will have a tenor of three years with a quarterly amortization of principal starting from March 2019, Fitch said.

The coupon rate is yet to be determined.

The proceeds from the issues will be used solely for Baltic Leasing's corporate purposes, Fitch said.

The issue benefits from recourse to Baltic Leasing LLC's parent, Baltic Leasing JSC, the agency explained.

Should Baltic Leasing fail to make an interest or principal payment under the terms of the bond, bondholders will benefit from a public irrevocable offer, allowing them to sell the bonds to the issuer's parent, Baltic Leasing JSC, Fitch said.

The bond rating is equalized with Baltic Leasing JSC's long-term local-currency issuer default rating, reflecting a view that default risk on the bond and on the parent's senior unsecured obligations is very closely aligned, the agency said.

The ratings reflect the company's solid performance through the cycle, stable small credit losses, strong liquidity and low leverage, Fitch said.

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