Moody's gives Sinek loan Ba1

Moody's Investors Service said it assigned a provisional Ba1 rating to the loan participation notes issued by Edel Capital SA for the sole purpose of financing its loan to Sinek Capital SA, a subsidiary of OAO Svyazinvestneftekhim.

The outlook is stable.

The rating reflects the application of Moody's new rating methodology for government-related issuers, giving a baseline credit assessment of 6, Ba1 local currency for the Republic of Tatarstan, high dependence and high support.

The agency said the baseline credit assessment of Sinek is underpinned by Sinek's influence over the dividend policy of Tatneft and NKNK, its main providers of dividend income as well as the large share of interest income it will receive from loans made available to some of its portfolio companies.

Moody's said the rating also reflects the economic environment in which Sinek operates and the uncertainty regarding the Russian legal and fiscal framework and the heavy reliance on the oil and petrochemical industries, which account for 54% of the Republic's industrial production and about 90% of Sinek's dividend income.

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