OREANDA-NEWS. Fitch Ratings has today assigned Dresdner Bank AG's loan participation notes of up to EUR408 million with a 10- to 15-year tenor final Long-term foreign currency 'BBB+' rating. The notes' proceeds will be on-lent to the City of Moscow under a credit facility agreement.

The liability of Dresdner Bank AG towards the note holders is limited to the City of Moscow's repayment of principal and interests. This links the underlying credit risk of the notes entirely to the City of Moscow's. The city intends to use the net proceeds to finance its capital investments. The City of Moscow is rated Long-term foreign currency 'BBB+', Short-term foreign currency 'F2' and Long-term local currency 'BBB+'. The Long-term rating Outlooks are Stable.

Moscow is the capital of the Russian Federation and accounts for about 7.2% of the Russian population and 21% of the country's gross domestic product.