Moody’s rates RusHydro LPNs Ba1

Moody's Investors Service said it assigned a Ba1 rating with a loss given default assessment of LGD3 to the proposed ruble-denominated senior unsecured loan participation notes to be issued by RusHydro Capital Markets DAC.

The issuer will in turn on-lend the proceeds to PJSC RusHydro.

The outlook is positive.

The notes will be issued by an orphan vehicle created for the sole purpose of financing a loan to RusHydro under the terms of an underlying loan agreement between the issuer and RusHydro. RusHydro will use the proceeds of the loan for general corporate purposes.

Noteholders will only have limited recourse to the issuer and will rely solely on RusHydro's credit quality to service and repay the debt.

The agency said the Ba1 rating is in line with RusHydro's corporate family rating and reflects Moody's view that RusHydro's obligations under the loan agreement, which will mirror the issuer's obligations under the proposed notes, will rank pari passu with other outstanding unsecured debts of RusHydro.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.