Fitch: IBA-Moscow bond BB

Fitch Ratings said it assigned a final BB rating to IBA-Moscow's RUB 3 billion bond issue.

The issue benefits from recourse to the bank's parent, International Bank of Azerbaijan (IBA), Fitch said.

The bond has a 10¾% interest rate and a three-year tenor with an early redemption option in December 2014. Should IBA-Moscow fail to make an interest or principal payment under the terms of the bond, bondholders will benefit from a put option, allowing them to sell the bonds to the parent bank, the agency said.

IBA's offer to purchase the bonds in case of a default represents an irrevocable undertaking and ranks equally with IBA's other senior unsecured obligations, save those preferred under Azerbaijan law, Fitch said.

The assignment of the final rating follows the completion of bond placement, which was initially assigned an expected BB rating, the agency said.

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