Moody's rates Bank Zenit note B1

Moody's Investors Service said it assigned a B1 long-term foreign-currency rating to the loan participation notes to be issued on a limited recourse basis by Zenit Capital plc for the sole purpose of financing a loan to Russia-based Bank Zenit. The notes will be denominated in dollars and the loan represents a senior unsecured claim on the bank.

The outlook for the rating is positive

Moody's said the rating for the notes is based on the fundamental credit quality of Bank Zenit - the ultimate obligor under the transaction - and on the key features of the notes. Under the terms of the issue, Bank Zenit must comply with certain covenants, such as negative pledge, limitation on mergers and disposals and on transactions with its affiliates. In addition, it must maintain a minimum total capital adequacy ratio of 12%. The loan agreement, the notes and the trust deed will be governed by and construed in accordance with English law.

The rating for the notes does not, however, incorporate any outside support from the bank's shareholders in the event of distress, although the agency said such support cannot be ruled out.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.