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Fitch assigns Bank of Moscow Eurobonds expected BBB- rating

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MOSCOW, April 25 (RIA Novosti) - Fitch Ratings has assigned the Bank of Moscow's upcoming Eurobond issue an expected long-term BBB- rating, the agency said Tuesday.

The Eurobonds will come in the form of fixed-rate loan participation notes to be issued by Kuznetski Capital S.A., the agency said.

"The notes are to be used solely to finance an unsecured unsubordinated loan made by Kuznetski Capital S.A., a Luxembourg-domiciled special purpose vehicle (SPV) to Russia's Bank of Moscow. The final rating is contingent upon receipt of final documentation conforming materially to information already received," Fitch said.

According to Fitch, the SPV will only pay noteholders the amounts received from the Bank of Moscow under the loan agreement. The SPV's claims under the loan agreement will rank at least equally with the claims of other unsecured creditors, except those preferred by relevant legislation.

Under Russian law, retail depositors' claims rank above those of other senior unsecured creditors, the agency said.

At the end of 2005, retail deposits accounted for about 32% of the Bank of Moscow's total liabilities, based on data in the bank's accounts audited in compliance with the International Financial Reporting Standards, Fitch said.

Established in 1994, the Bank of Moscow is on the list of the country's top thirty banks in terms of assets published by the Central Bank of Russia.

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