S&P assigns Maretex notes B-

Standard & Poor's said it assigned its B- long-term debt rating to C.R.R. BV's proposed senior unsecured note issue, the sole purpose of which is to finance a loan to Maretex Ltd. (B-/stable).

The amount and terms of the issue will be determined at placement, although management plans that the amount will be up to $150 million and maturity will be three years, the agency said.

Maretex subsidiaries OAO Comtech, OAO Trubostal, CJSC Steel Company and CJSC KSCP will guarantee the loan, S&P said, noting that Maretex will use the funds to finance its investment program.

"The rating on the notes is the same as the corporate credit rating on Maretex Ltd. because the notes are secured by a charge over all of Maretex's principal and interest payments in favor of the trustee for the benefit of the noteholders, so that the noteholders will essentially face Maretex's credit risk," said S&P credit analyst Andrey Nikolaev.

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