Moody's rates International Industrial notes B1

Moody's Investors Service said it assigned a B1 long-term foreign-currency rating to IIB Luxembourg SA's senior unsecured loan participation notes. The proceeds will be used to finance a loan to International Industrial Bank.

The outlook for the rating is stable.

Moody's said the bank's reported total capital ratio of 36% for the year ended December 2006 should allow it to comply with the high capital adequacy requirement and with the related-party lending restriction.

Also, covenants say that the notes may become payable if the bank's ratings are downgraded as a result of a reorganization, the agency said, and this trigger could potentially have adverse liquidity implications for the bank and might exert additional downward pressure on its ratings.

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