Fitch rates BKE bonds BB

Fitch Ratings said it assigned a final senior unsecured rating of BB to OOO Burovoya Kompaniya Eurasia (BKE)'s 8.4% coupon RUB 5 billion bonds due in 2018, along with a final national senior unsecured rating of AA-(rus).

The bonds are the first tranche of the company's domestic RUB 11 billion bond program and have a put option in 2016, thus their effective maturity is five years, Fitch said.

BKE is a wholly owned indirect subsidiary of Eurasia Drilling Co. Ltd. It provides onshore drilling services in Russia and accounted for most of Eurasia Drilling's revenues and EBITDA in 2010, the agency said.

BKE will use the proceeds from the bonds to lengthen its debt maturity profile, Fitch said.

Eurasia Drilling also has a long-term local-currency issuer default rating of BB, national long-term rating of AA-(rus), short-term foreign-currency issuer default rating of B and short-term local-currency issuer default rating of B.

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