Fitch rates Int'l Industrial Bank notes B

Fitch Ratings said it assigned International Industrial Bank Luxembourg SA's $100 million issue of limited recourse three-year loan participation notes, with an 18-month put option, a final long-term B rating.

Fitch said the notes are to be used solely for financing a loan to Russia's International Industrial Bank CJSC rated issuer default B/stable outlook, short-term B, individual D, support 5, national long-term BBB-(rus). IIB Luxembourg SA will only pay noteholders amounts received from IIB under the loan agreement.

Fitch said the loan agreement states that the claims of the noteholders will rank at least pari passu with the claims of other unsecured creditors, save those preferred by relevant (e.g., bankruptcy, liquidation) laws. Under Russian law, the claims of retail depositors rank above those of unsecured creditors.

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