Fitch rates VEB bonds BBB

Fitch Ratings said it assigned VEB Leasing Invest Ltd.'s upcoming issue of dollar-denominated bonds an expected long-term BBB rating.

The proceeds from the issue will be on-lent to OJSC VEB-Leasing, the Russia-based parent company of VEB Leasing.

VEB Leasing has a long-term issuer default rating of BBB, short-term issuer default rating of F3 and national long-term rating of AAA(rus). The outlook is stable.

The financial covenants on the bonds are VEB Leasing's net interest income being above zero and its total equity remaining above 5% of total assets, the agency said. The risk of VEBL breaching these covenants is remote.

The ratings reflect the view of the likelihood of support from its parent if needed, the agency added. The company has been integrated within VEB, which plays a key role in all material business decisions.

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