Fitch rates Volkswagen Bank RUS bonds A-

Fitch Ratings said it assigned an expected long-term rating of A- to Volkswagen Bank RUS LLC's upcoming issue of fixed-rate ruble-denominated bonds.

The issue benefits from recourse to the company's parent, Volkswagen Financial Services AG, Fitch said.

In total, Volkswagen Bank has registered 13 series of bonds with issue sizes of RUB 2 billion, RUB 3 billion or RUB 5 billion and tenors of five or seven years, the agency said.

Initially, Volkswagen Bank plans to place an issue of up to RUB 5 billion, Fitch said.

The proceeds will be used for general corporate purposes.

Should the company fail to make a coupon or principal payment under the terms of the bonds, bondholders will benefit from a public irrevocable offer that would allow them to sell the bonds to Volkswagen Financial Services, the agency said.

The rating on the bonds is driven by potential support from the parent company, which is a wholly owned subsidiary of Volkswagen AG, Fitch said.

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