S&P rates Vnesheconombank notes BBB

Standard & Poor's said it assigned BBB ratings to the seventh- and eighth-series of senior loan participation notes issued Feb. 21, 2013 by Vnesheconombank via VEB Finance plc.

The amounts of the notes are €1 billion and €0.5 billion, respectively, and they form part of VEB's large notes program, S&P said. The notes have five- and 10-year maturities and fixed 3.035% and 4.032% interest rates paid annually.

The ratings are equalized with the long-term foreign-currency issuer credit rating on the bank.

The long-term ratings are equalized with those on the Russian Federation, reflecting a view of an almost certain likelihood that the Russian government would provide timely and sufficient extraordinary support if necessary, the agency said.

The bank is considered a government-related entity and plays a critical role in Russia as the prime public development institution of the government, a role that cannot be readily undertaken by a private entity, S&P said.

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