Moody's gives Kyiv loan B2

Moody's Investors Service said it assigned a B2 rating to the $250 million loan participation notes issued by Credit Suisse First Boston International for the sole purpose of funding a loan to City of Kyiv.

Debt service obligations on the notes are to be supported exclusively by payments received from the City of Kyiv under the loan agreement with Credit Suisse First Boston International and Kyiv's obligations under the loan agreement rank pari passu with all of its other senior unsecured and unsubordinated debts, the agency said.

The B2 rating reflects Kyiv's position as the Capital of Ukraine, its diversified increasingly service oriented economy, its growth potential and its ability to partially fund its investments with its internal resources, Moody's noted.

The ratings also reflect Kyiv's low predictability and flexibility of revenues owing to the transfer mechanism between the city and the central government, the agency added.

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