Moody's rates International Industrial notes B1

Moody's Investors Service said it assigned a B1 long-term foreign-currency debt rating to the loan participation notes issued on a limited-recourse basis by IIB Luxembourg SA, a special purpose vehicle incorporated under the laws of Luxembourg, for the purpose of financing a senior unsecured loan to International Industrial Bank, Russia. The notes in the amount of $200 million are dollar-denominated, carry an 11% coupon rate and have a maturity of three years.

The outlook is negative.

The rating is based on the bank's fundamental credit quality, as it is the ultimate obligor under the transaction, Moody's said.

The loan to the bank, which is the only source of repayment for the notes, will rank at least pari passu with other unsecured debt of the bank, the agency said.

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