Moody's rates VTB notes Baa3

Moody's Investors Service assigned a rating of prospective Baa3 to the series 3 issue of medium-term loan participation notes to be issued by VTB Capital SA under loan participation note issuance program.

Moody's said the notes will be used to fund a loan by Deutsche Bank Luxembourg SA to the Open Joint Stock Company Vneshtorgbank, a bank established under the laws of the Russian Federation.

The (P)Baa3 rating of the notes is based primarily on the strength of the structure and the protection furnished by early amortization events, the ability of VTB, the ultimate obligor in respect of payments under the notes, to make timely payments of interest and ultimate payment of principal on the loan, the effective segregation afforded by Luxembourg law of the SPV's rights to the Fiduciary Deposit Account and to the loan repayments, the charge and assignment of rights and interests by the SPV and Deutsche Bank Luxembourg SA to the trustee for the note holders under English law and triggers linked to the performance of the loan and to the ability of Deutsche Bank Luxembourg SA to act as fiduciary, Moody's said.

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