Fitch assigns Ukrsibbank notes B

Fitch ratings said it assigned Bayerische Hypo- und Vereinsbank AG's (HVB) upcoming issue of limited recourse loan participation notes a long-term B rating. The notes are to be used solely for financing a loan to JSIB Ukrsibbank, rated long-term foreign currency B- with a stable outlook, short-term B, support 5 and individual D/E.

HVB will only pay noteholders principal and interest, if any, received from Ukrsibbank under the loan agreement, the agency said.

Fitch said the loan agreement contains a cross default clause and a covenant that HVB's claims under the loan agreement will rank at least pari passu with the claims of other unsecured and unsubordinated creditors, save those preferred by relevant laws.

Noteholders will benefit from a put option in the event of a change in control of Ukrsibbank or its corporate restructuring, should these events result in a rating downgrade, the agency added.

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