S&P gives UzAuto Motors notes B+

S&P said it assigned a B+ rating to the senior unsecured notes issued by UzAuto Motors JSC.

“We aligned the rating on the notes to the long-term issuer credit rating because the notes will not be structurally or contractually subordinated to any other debt instrument after the issuance. Moreover, the notes will be placed by the company, rather than through subsidiary, further limiting subordination risk,” S&P said in a press release.

UzAuto will use the proceeds to finance its capital investments program. “This relates mainly to the Global Emerging Markets platform, which entails equipment renewal to retire old models and start production of General Motors models designed for emerging markets. The company will also partially refinance its outstanding debt. This transaction should extend the group's maturity profile while providing additional liquidity to the group,” the agency said.

The outlook is stable.

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