Fitch rates Bank Saint Petersburg notes B

Fitch Ratings said it assigned BSPB Finance plc's upcoming issue of limited recourse loan participation notes expected ratings of recovery RR4 and long-term B.

The notes are to be used solely for financing a loan to Bank Saint Petersburg, which is rated issuer default B with stable outlook, short-term B, individual D and support 5.

Fitch noted that claims under the loan agreement will rank at least equally with the claims of other senior unsecured creditors of Bank Saint Petersburg, save those whose claims are preferred by any bankruptcy, insolvency, liquidation or similar laws of general application.

The loan agreement contains covenants restricting mergers and disposals by the bank and specifies that transactions between the bank and its affiliates must be done on market terms, with an independent appraiser to verify this in respect to transactions of over $20 million.

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