Fitch downgrades Russian Helicopters

Fitch Ratings said it downgraded Russian Helicopters JSC's local- and foreign-currency long-term issuer default ratings to BB from BB+ and long-term national rating to AA-(rus) from AA(rus).

The short-term issuer default rating and the short-term national rating were affirmed at B and F1+(rus).

The outlook is stable.

The downgrades reflect that, contrary to prior expectations, the company failed to reduce leverage below the downgrade guideline of 3.5x by the end of 2012, Fitch said.

Furthermore, the agency said it believes the company's leverage is unlikely to improve materially in the short term and is no longer consistent with the expectations of a BB standalone rating for this sector, the agency said.

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