Fitch rates Volkswagen Bank RUS bonds A-

Fitch Ratings said it affirmed Volkswagen Bank RUS LLC's RUB 5 billion of fixed-rate bonds (series 07) issued in June 2014 at long-term A-.

The bonds have a tenor of five years with a put option in two years. The coupon for the first two years has been set at 9.35%.

Fitch also assigned the upcoming issues (series 08 and 09) of fixed-rate bonds an expected long-term rating of A-(EXP). Each issue size will be up to RUB 5 billion, while other terms are yet to be determined.

Proceeds will be used for corporate purposes.

All issues benefit from recourse to Volkswagen Bank RUS’s German parent, Volkswagen Financial Services AG. Should Volkswagen Bank RUS 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.

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