Fitch rates Bulgarian Energy eurobond BB+

Fitch Ratings said it assigned Bulgarian Energy Holding EAD's debut €500 million 4¼% eurobond due 2018 a final foreign currency senior unsecured rating of BB+.

The rating for the unsecured bonds is at the same level as the company's long-term foreign currency issuer default rating of BB+/stable, which is based on the group's consolidated financial and business profile.

Fitch said it believes that the structural subordination of the holding company's creditors to the external creditors lending directly to its operating companies is mitigated by the rising share of the holding company's debt in total debt and the low ratio of prior-ranking debt (the debt of subsidiaries who do not guarantee Bulgarian Energy) to consolidated EBITDA.

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