Fitch rates VTB bonds BBB+

Fitch Ratings said it assigned BBB+ long-term ratings to VTB-Leasing Finance's upcoming issues of series 3 through series 6 fixed-rate bonds, each of which will be RUR 5 billion in size, and to its RUR 10 billion series 2 fixed-rate bonds. The bonds benefit from a guarantee from parent company JSC VTB-Leasing, which has BBB+ long-term foreign- and local-currency issuer default ratings.

The outlook is stable.

VTB-Leasing Finance's sole activity is to raise funding for VTB-Leasing, to which it on-lends the proceeds of the bonds that it raises in the market. The agency said the rating of the bonds has been equalized with the long-term local-currency issuer default rating of VTB-Leasing, primarily because Fitch believes the default risk of the two companies to be highly correlated.

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