Fitch rates VEB bonds BBB

Fitch Ratings said it assigned expected ratings of BBB to several series of Vnesheconombank's (VEB) three-year dollar-denominated local bonds.

The bonds include series 01v, 02v and 03v for $500 million each and series 04v and 05v for $750 million each, the agency said.

VEB's obligations under the bonds rank equally with the claims of other senior unsecured creditors, except those of retail depositors, which have a priority, Fitch said.

However, retail deposits accounted for a negligible proportion of VEB's standalone balance sheet, the agency said.

The ratings are driven by a high probability of support from the Russian sovereign due to its sole ownership by the state and its status as a national development bank, Fitch said.

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