S&P rates Moscow bond B-/ruBBB-

Standard & Poor's said it assigned a B- long-term debt rating and ruBBB- Russia national scale rating to the proposed RUR 33 billion senior unsecured bond with an amortizing repayment schedule to be issued by the Moscow Oblast (local-currency B-/Watch negative). Ratings are on CreditWatch with negative implications because the ratings on the oblast are on CreditWatch with negative implications.

Proceeds will be used to refinance most of the oblast's short-term debt due by year-end 2008, which encompasses RUR 14.6 billion in loans from state-owned banks, the put option (RUR 5.2 billion) on a bond issued by Moscow Oblast Mortgage Agency and guarantees of loans raised by the oblast's companies and municipalities of about RUR 17.7 billion.

Ratings on the bond mirror those on the oblast. The issue will be placed on Dec. 11 and will have seven, 170-day coupon payments of about 18% per year each and a 39-month maturity.

The agency lowered the long-term rating on the oblast to B- and placed the rating on CreditWatch with negative implications on Oct. 27, following uncertainty about the refinancing terms of the oblast's massive short-term direct and guaranteed debt due by the end of 2008.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.