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| 10/8/2009 |
| Renaissance Capital's Eurobond assigned 'B' Rating from Fitch |
London- Moscow, October 8, 2009 – Fitch Ratings has today assigned Renaissance Securities Trading Limited's (RSTL) new USD1bn euro medium-term note programme ratings of Long-term 'B' (for senior unsecured notes with maturities in excess of one year) and Short-term 'B' (for senior unsecured notes with maturities of less than one year). It has also assigned a Long-term 'B' rating to USD225m notes due April 2011 issued under the programme.
Commenting on the rating, Kieran Donnelly, Managing Director of Renaissance Capital said: “This is the first Eurobond out of Russia for a non-government issue since the crisis. The rating from Fitch demonstrates confidence in our ability to guarantee the newly issued Eurobonds reconfirming the Group’s leading market position and commitment to its obligations before the global investor community. It is another outcome of our efforts and one more sound proof that our core strategy is sound.”
Explaining the decision to assign Renaissance Capital’s new note program the Long-term 'B' rating, Fitch stated in a press release: “The new programme, established on 28 September 2009, is to replace the existing USD1bn EMTN programme (rated Long-term 'B'). The notes under the new programme are unconditionally and irrevocably guaranteed by Renaissance Capital Holdings Limited (RCHL, rated Long-term 'B-'/Negative) and Renaissance Financial Holdings Limited (RFHL). Fitch believes that cash flows for servicing the debt issued by RSTL would be sourced from group operating subsidiaries, rather than directly from RCHL and that the specific structural concern affecting RCHL's Long-term IDR has no bearing on operating subsidiaries' dealings with counterparties/other creditors.
On September 28, 2009 Renaissance Capital announced the successful voluntary debt exchange offer of its existing Eurobonds and the new issue of its 1.5-year notes for a total amount of USD225 million. The notes in the amount of USD225m due April 2011 raised off the new programme were issued in two tranches which are consolidated to form a single series. The first USD104m tranche was exchanged for a part of the outstanding USD250m 8.75% notes due November 2009 issued under the old programme. The second USD121m tranche is planned to be used to repay the residual amount of the bond outstanding in November 2009. The new notes bear a fixed rate of 12% per annum payable semi-annually and were placed at a 4% discount.
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