Moody's: Russian Helicopters bond B1

Moody's Investors Service said it assigned a provisional B1 rating, with a loss given default assessment of LGD5-89%, and a negative outlook to the proposed issuance of notes by Russian Helicopters Finance Ltd.

Russian Helicopters will use the proceeds from the notes placement to refinance part of its existing debt.

Moody's said the provisional B1 rating is two notches below Russian Helicopters' corporate family rating, reflecting the expectation that the notes: (a) will be issued for the sole purpose of financing a loan to Russian Helicopters (a holding company of the group), and therefore the noteholders will rely solely on the latter's creditworthiness to service and repay the debt; and (b) will be structurally subordinated to debt located at the level of operating companies of Russian Helicopters group, which represents a dominant portion of the group's total debt.

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