Fitch rates Renaissance Capital notes B-

Fitch Ratings said it assigned Ensorte Enterprises Ltd.'s upcoming issue of limited recourse loan participation notes expected ratings of long-term B- and recovery rating of 4. The notes are to be used solely for financing a loan to CB Renaissance Capital, which is guaranteed by Renaissance Capital International Services Ltd., Bermuda, which is rated issuer default B-, short-term B, support 5, individual D/E and national long-term BB(rus).

The outlooks is stable. The final ratings are contingent upon the receipt of final documentation.

The loan agreement contains covenants restricting any reorganizations and disposals by Renaissance Capital International Services and its material subsidiaries, lending to related parties to 10% of net assets and a change of business, the agency said. It also contains a negative pledge clause, which allows for a creation of a-lien on up to 30% of total assets of the group. Were such transactions to be undertaken, Fitch said the nature and the extent of any over-collateralization would be assessed by the agency for any potential impact on unsecured creditors.

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