Fitch rates Promsvyabank notes B-

Fitch Ratings said it assigned PSB Finance SA's upcoming subordinated notes issue, expected to be of at least $100 million and due January 2018, expected ratings of long-term B- and recovery rating of 6. The notes will bear interest from 2008 to 2013 at a rate of 12 ½% per annum, the agency said, and from 2013 at the step-up interest rate, in each case payable semi-annually.

The final ratings are contingent on receipt of final documents.

The proceeds are to be used for redeeming the outstanding principal of $100 million notes, which finance an existing subordinated loan to Promsvyazbank.

The claims of PSB Finance in relation to the new subordinated loan will be junior to those of all senior creditors of PSB and will rank at least equally between themselves and with the claims of other subordinated creditors of PSB, Fitch said.

© 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.