Moody's rates Pravex-Bank bond B2

Moody's Investors Service said it assigned a B2 long-term, local-currency senior unsecured debt rating and an A3.ua long-term national scale rating to the senior unsecured bonds to be issued by Ukraine-based Pravex-Bank. The planned issue size is 50 million hryvnia, with a final maturity of three years.

The outlook is stable.

The agency said the ratings are based on Pravex-Bank's fundamental credit quality and factor in the bank's ability to fulfill its long-term obligations. They include those associated with the put option that the bondholders will, according to the terms of the issue, be able to on the first and second anniversaries of the issue. Moody's noted that if the bank's credit quality were to deteriorate at these times, exercise of the put options might exert additional pressure on its financial condition.

The obligations of Pravex-Bank to make payments under the bonds will rank at all times at least pari-passu with the claims of all other unsecured and unsubordinated creditors of the bank, save for those claims that are preferred by any relevant law. According to Ukrainian legislation, accounts of individuals (71% of Pravex-Bank's total liabilities at the end of 2005) are ranked senior in right of payment to the claims of the bondholders, Moody's said.

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