Moody's rates Eurasia Capital notes Ba3

Moody's Investors Service said it assigned a long-term rating of Ba3 to the upcoming issue of loan participation notes by Eurasia Capital SA, the proceeds of which will be used for the sole purpose of making a loan to Home Credit and Finance Bank of Russia.

The agency said the exact amount and tenor of the issue is yet to be determined.

The outlook is stable.

The bank's existing Ba3 (stable) long-term foreign currency deposit rating, not prime short-term rating and D- (stable) financial strength rating are unaffected, Moody's said.

The rating is based primarily on the fundamental ability of the bank to make timely payments of interest and ultimate payment of principal on the loan, the agency said, adding that the rating incorporates some support from the bank's ultimate shareholder, the PPF Group.

However, Moody's said that despite the stable outlook, the potential volatility of the rating may be higher than that of other Ba3 ratings because of a financial covenant stipulating that the bank maintains a minimum restrictive 15% tier I BIS capital adequacy ratio.

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