Fitch: VEB Finance notes BBB

Fitch Ratings said it assigned VEB Finance Ltd.'s CHF 500 million series 4 issue of 3.75% senior unsecured loan participation notes due February 2016 a final long-term BBB rating.

The proceeds will be used solely for financing a loan to Vnesheconombank, which has a long-term foreign-currency issuer default rating of BBB with a stable outlook, a short-term issuer default rating of F3.

The notes are issued under Vnesheconombank's $30 billion loan participation notes program, Fitch said.

The ratings are driven by a high probability of support from the Russian sovereign, due to its 100% state ownership, its status as a national development bank and its close association with the Russian state, the agency said.

The global financial crisis led VEB to acquire a broader economic and financial stabilization mandate and to participate in the implementation of government anti-crisis measures, Fitch said.

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