Moody's rates Bank Soyuz note B1

Moody's Investors Service said it assigned a B1 rating to the loan participation notes to be issued on a limited recourse basis by SB Funding Ltd. for the sole purpose of funding a loan to Bank Soyuz, which is rated B1/Not-Prime for long- and short-term foreign- and local-currency deposits and E+ for financial strength.

The outlook for the rating is stable.

The agency said noteholders will rely for repayment solely and exclusively on the ability of Bank Soyuz to make payments under the loan agreement. The amount and the tenor of the notes have yet to be determined.

The obligations of Bank Soyuz to make payments under the loan agreement will rank at all times at least pari passu with the claims of all other unsecured creditors of the borrower, save for those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application. Moody's noted that Russia is in general a country with individual depositor preference, which may reduce the recovery rates for the noteholders, especially if such deposits were to represent a sizeable proportion of the bank's liabilities in the event of liquidation.

© 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.