Moody's rates Promsvyazbank notes B1

Moody's Investors Service said it assigned a rating of B1 to the $100 million 10.25% loan participation notes due 2006 issued by Promsvyaz Finance SA.

The deposit is applied by J.P. Morgan Bank Luxembourg SA for the sole purpose of making a loan to Joint Stock Commercial Bank Promsvyazbank, a bank established under the laws of the Russian Federation

Moody's said the B1 rating of the notes is based primarily on the strength of the structure, the ability of PSB to make timely payments of interest and ultimate payment of principal on the loan, the effective segregation afforded by Luxembourg law of the rights to amounts due under the Fiduciary Deposit Agreement, the charge over and assignment of certain rights and interests by the SPV and J.P. Morgan Bank Luxembourg SA and to the ability of J.P. Morgan Bank Luxembourg SA to act as fiduciary.

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