(The following statement was released by the rating agency)
Sept 13 - Fitch Ratings has assigned Russian Agricultural Bank’s (RusAg) USD450mn tap of USD1.3bn senior unsecured bond issue due December 2017 a Long-term foreign currency rating of ‘BBB’.
The USD450m tap was issued on 31 August 2012. The first two tranches of the bonds were issued on 27 June 2012 for USD500m and on 5 July 2012 for USD350m. The interest commencement date for all three tranches is 27 June 2012. The bonds mature in December 2017 and have a semi-annual coupon at 5.298%. The bonds were issued under the USD15bn LPN programme, which allows for issuance of both senior unsecured and subordinated debt. Terms of the programme include a change of control clause should the Russian Federation cease to own at least 50% plus one share of the bank.
RusAg is the fourth-largest bank in Russia in terms of assets. The bank has an estimated 60% market share in agribusiness lending and a leading presence in rural areas across Russia. RusAg is fully owned by the state, via the Federal Agency on Federal Property Management. The privatisation of up to a 25% stake is possible in the period up to 2016, although there are no concrete privatisation plans at present. RusAg’s Long-Term Issuer Default Rating (IDR) reflects Fitch’s view of the high probability of support being available from the Russian authorities.
RusAg’s ratings are:
Long-term IDR ‘BBB’, Stable Outlook
Short-term IDR ‘F3’
Viability Rating ‘b’
National Long-term rating ‘AAA(rus)', Stable Outlook
Support Rating ‘2’
Support Rating Floor ‘BBB’
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