Fitch Ratings-London/Moscow- 11 November 2009: Fitch Ratings has today assigned the Krasnoyarsk Region’s upcoming RUB10.2bn domestic bond issue, due 8 November 2012, an expected Long-term local currency rating of ‘BB+’ and National Long-term rating of 'AA(rus)'. The region is rated Long-term foreign and local currency 'BB+’ with Stable Outlooks, respectively, Short-term foreign currency 'B', and National Long-term 'AA(rus)' with a Stable Outlook.
The bond issue has a fixed-rate step-down coupon. The initial coupon rate will be set at the auction on 12 November 2009. The principal will be amortised by 30% of the initial bond issue value on 11 November 2010, and by another 30% of the initial value on 10 November 2011. The remaining 40% of the initial value will be redeemed on 8 November 2012. The proceeds from the new bond will be used to finance the region’s budget deficit.
The final rating is contingent upon the receipt of final documents conforming to information already received.
The Krasnoyarsk region is located in the eastern Siberian part of Russia. The region accounts for 2.6% of Russia's (2007) GDP and around 2% of its population.
|
