Fitch Assigns VEB Leasing USD Series 05 and 06 Final 'BBB' Ratings
November 1, 2012 Fitch Ratings
Fitch Ratings-London/Moscow-01 November 2012: Fitch Ratings has assigned Russian VEB Leasing's (VEBL, 'BBB'/Stable) series 05 and 06 USD-denominated bonds a final Long-term ratings of 'BBB'.
Both series bonds have a nominal value of USD100m, bullet repayment on 17 October 2017, and a 5.5% coupon rate payable semi-annually. VEBL's obligations under the notes will rank equally with the claims of on existing senior unsecured debt. The proceeds will be used to fund VEBL's core business.
VEBL is the leasing arm of Russia's state-owned Vnesheconombank (VEB; 'BBB'/Stable), which directly holds a 84.6% stake in company, while VEB's ultimate subsidiaries control the remaining stake.
VEBL's ratings reflect Fitch's view on the likelihood of support the company may receive from parent, if needed. The company is highly integrated within VEB, and borrowings from VEB and its subsidiaries represented 22% of total funding at end-H112. VEBL accounted for 7.6% of VEB's consolidated assets at end-H112.
Company — VEB-Leasing
Full nameVEB-leasing JSC