Fitch rates RusHydro notes BBB-

Fitch Ratings said it assigned an expected BBB- foreign-currency senior unsecured rating to RusHydro Capital Markets DAC's renminbi-denominated loan participation notes.

The rating is in line with PJSC RusHydro's long-term foreign-currency issuer default rating of BBB-.

Fitch also said it assigned an expected local-currency senior unsecured rating of BBB- to the company's ruble-denominated notes in line with the company's long-term local-currency issuer default rating.

RusHydro Capital Markets is an orphan special purpose financing vehicle.

The notes will be issued on a limited recourse basis for the sole purpose of funding a loan to RusHydro, the agency said.

The noteholders will rely solely and exclusively on RusHydro's credit and financial standing for the payment of obligations under the notes, Fitch said.

The proceeds will be used for refinancing its current loan portfolio and general corporate purposes, the agency said.

RusHydro reported better-than-expected results for 2017, supported by strong hydro power output and liberalization of hydro capacity sales in Siberia, Fitch said.

The agency said it anticipates that RusHydro will maintain a solid financial profile over the forecast horizon, reflecting EBITDA generation at about the 2017 level.

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