OREANDA-NEWS. June 29, 2010. Fitch Ratings-London/Moscow-25 June 2010: Fitch Ratings has today assigned Russia-based Vnesheconombank's (VEB) proposed loan participation notes (LPN) programme an expected Long-term senior debt rating of 'BBB'. Fitch has additionally assigned VEB a Long-term local currency Issuer Default Rating (IDR) of 'BBB' with a Stable Outlook, in line with its foreign currency Long-term IDR of 'BBB'.

The final rating for the LPN programme is contingent upon the receipt of final documents conforming to information already received. (Fitch does not assign generic programme ratings to subordinated debt, which it rates on a case-by-case basis.)

Senior unsecured notes under the LPN programme will be issued by Ireland-domiciled VEB Finance Limited, and the proceeds will be used solely for financing loans to VEB. The lender's claims in relation to the repayment of the loan will rank at least equally with all other unsecured and unsubordinated financial indebtedness of VEB.

VEB is rated Long-term foreign and local currency IDR 'BBB', Short-term foreign currency IDR 'F3' and Support Rating '2'. Its ratings are equalised with those of the Russian sovereign ('BBB'/Outlook Stable/'F3'), due to its sole ownership by the state, its status as a national development bank and its close association with the Russian state and current government. The global financial crisis has led VEB to acquire a broader economic and financial stabilisation mandate, with its balance sheet being extensively used to implement government anti-crisis measures.