Fitch rates Bank VTB24 note BBB+

Fitch Ratings said it assigned an expected BBB+ long-term rating to the upcoming first issue under VTB-24 Capital plc's $5 billion limited recourse loan participation note program. The proceeds are to be used solely for financing a loan to Russia-based CJSC Bank VTB24, and noteholders will only receive amounts (principal and interest) received from VTB24 under the loan agreement.

VTB-24 Capital's claims under the senior loan with Bank VTB24 will rank at least equally with the claims of other senior unsecured creditors, save those preferred by relevant (bankruptcy, liquidation etc.) laws. Under Russian law, the claims of retail depositors rank above those of other senior unsecured creditors. Fitch said that at the end of June, retail deposits accounted for 38% of Bank VTB24's total liabilities.

The agency said Bank VTB24's BBB+ issuer default rating, F2 short-term rating, 2 support rating and stable outlook are driven by support from its majority shareholder, JSC Vneshtorgbank.

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