Fitch rates IBA-Moscow bond BB

Fitch Ratings said it assigned an expected BB long-term rating to IBA-Moscow's upcoming RUB 3 billion bond issue.

The issue benefits from recourse to IBA-Moscow's parent International Bank of Azerbaijan, Fitch said.

The bond will have a three-year tenor and proceeds will be used solely for IBA-Moscow's purposes, the agency said.

The rating is equalized with IBA-Moscow's long-term foreign-currency issuer default rating, reflecting a view that default risk on the bond and on IBA-Moscow's other senior unsecured obligations is essentially the same, Fitch said.

The agency said it could be challenging for bondholders to enforce the put option in an Azerbaijan court, in case of need.

However, Fitch said it believes that a selective default on the put option is very unlikely.

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