CREDIT BANK OF MOSCOW's Proposed Senior Unsecured Loan Participation Notes Rated 'BB-'

  • We understand that Russia-based CREDIT BANK OF MOSCOW aims to issue euro-denominated senior unsecured loan participation notes (LPNs) via its financial vehicle, CBOM Finance PLC.
  • In our view, the proposed notes satisfy the conditions set out in our group rating methodology.
  • We are therefore assigning our 'BB-' long-term issue rating to the proposed notes, in line with the issuer credit rating on CREDIT BANK OF MOSCOW.
MOSCOW (S&P Global Ratings) Feb. 5, 2019--S&P Global Ratings today assigned 
its 'BB-' long-term issue rating to the proposed euro-denominated senior 
unsecured LPNs to be issued by CREDIT BANK OF MOSCOW via its financial 
vehicle, CBOM Finance. The rating is subject to our analysis of the notes' 
final documentation. 

We rate the proposed LPNs at the same level as our long-term issuer credit 
rating on CREDIT BANK OF MOSCOW because the notes meet certain conditions 
regarding issuance by special-purpose vehicles (SPVs) set out in our group 
rating methodology.

Specifically, we rate LPNs issued by an SPV at the same level as we would rate 
equivalent-ranking debt of the underlying borrower (the sponsor) and treat the 
contractual obligations of the SPV as financial obligations of the sponsor if 
the following conditions are met:
  • All of the SPV's debt obligations are backed by equivalent-ranking obligations with equivalent payment terms issued by the sponsor;
  • The SPV is a strategic financing entity for the sponsor set up solely to raise debt on behalf of the sponsor's group; and
  • We believe the sponsor is willing and able to support the SPV to ensure full and timely payment of interest and principal on the debt issued by the SPV when it is due, including payment of any of the SPV's expenses.
The purpose of the proposed LPNs is to finance a loan to CREDIT BANK OF 
MOSCOW. The maturity of the issue is to be greater than one year. The final 
terms of the issue will be defined at the time of the notes' placement.

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