Moody's rates International Industrial Bank note B1

Moody's Investors Service said it assigned a B1 long-term foreign-currency rating to the senior unsecured loan participation notes to be issued by IIB Luxembourg SA for the sole purpose of financing a senior unsecured loan to International Industrial Bank (rated B1/Not Prime/E+).

The outlook is stable.

The bank's obligations under the transaction will rank at least pari passu in right of payment with all its other senior unsecured obligations. According to the loan agreement, the bank must comply with a number of covenants such as negative pledge, limitations on mergers, distribution of dividends and asset sales and maintenance of a consolidated total capital adequacy ratio of at least 20%.

The agency said the bank's reported total capital ratio of 41% at the end of September should allow it to comply comfortably with the high capital adequacy requirement.

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