Fitch rates Ventrelt

Fitch Ratings said it assigned RVK-Finans' prospective RUR1.75 billion bonds due to mature in July 2011 an expected foreign- and local-currency senior unsecured rating of BB-. The final ratings are contingent upon the receipt of final documents.

The bonds benefit from sureties provided on a joint and several basis from RVK-Invest, Krasnodar Vodokanal, Tyumen Vodokanal, and Kaluzhsky Vodokanal. RVK-Finans and these surety providers are subsidiaries of Ventrelt Holding Ltd., which is rated BB- with stable view.

Ventrelt's ratings reflect the fledgling tariff regulatory framework for water utilities, the need to improve customer collection rates, operating cost and capital expenditure risks, untested recovery prospects and other issues related to relatively new privately owned water companies operating in Russia, Fitch said.

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