Moody's rates VTB Capital notes Baa2

Moody's Investors Service said it assigned a definitive rating of Baa2 to the $750 million 6.315% loan participation notes due 2015 issued by VTB Capital SA.

The notes issued by the special purpose vehicle are used to fund a subordinated loan to the OJSC Vneshtorgbank, a bank established under the laws of the Russian Federation.

Moody's stated that the Baa2 rating incorporates the fundamental credit quality of VTB. The rating also reflects the probability of a sovereign default implied by Russia's Baa3 foreign currency bond rating, and the likelihood that the Russian government could impose a debt moratorium in the event of default on its own foreign currency obligations.

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