Fitch rates EuroChem note BB-

Fitch Ratings said it assigned an expected BB- senior unsecured rating to EuroChem Finance plc's proposed issue of loan participation notes, the proceeds of which will be lend to OJSC EuroChem Mineral and Chemical Co.

EuroChem will use the loan to refinance existing debt and for general corporate purposes.

The agency said EuroChem Finance's payment obligations in respect of the notes and obligations under a trust deed with Deutsche Trustee Co. Ltd. will benefit from a first fixed charge with full title guarantee in favor of the trustee for the benefit of itself and the noteholders of certain EuroChem Finance's rights and interests as lender under the loan agreement. The loan agreement, the trust deed and other related documents are governed by English law.

Covenants in the loan agreement include, among others, an equal ranking of the loan with present or future unsecured creditors of EuroChem and a negative pledge. Fitch said EuroChem has a total debt-to-consolidated EBITDA ceiling of 3x, and the total debt-to-EBITDA ratio was 0.8x for 2005.

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