Fitch rates Bank VTB notes BBB

Fitch Ratings said it assigned VTB Capital SA's upcoming issues of limited recourse loan participation notes in Swiss francs for three years and in Singapore dollars for two years expected long-term BBB ratings.

The ratings are contingent on the receipt of final documents. The proceeds are to be used solely for financing loans to Russia's Bank VTB, which has long-term foreign- and local-currency issuer default ratings of BBB, short-term foreign-currency issuer default rating of F3 and national long-term rating of AAA(rus).

The outlook is stable.

The notes are issued under the bank's loan participation notes program, which has a long-term rating of BBB and short-term rating of F3.

The lender's claims in relation to the repayment of the loan will rank at least equally with the claims of other senior unsecured creditors, save those preferred by relevant laws, Fitch said.

VTB is Russia's second-largest bank by assets and equity and is currently 85.5% state-owned, the agency said.

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