OREANDA-NEWS. Fitch Ratings has assigned Alfa Bond Issuance plc's (ABI) upcoming issue of USD-denominated senior limited recourse loan participation notes an expected 'BB+(EXP)' rating. The final rating is contingent upon the receipt of final documents conforming to information already received.

ABI, an Irish SPV issuing the bonds, will be on-lending the proceeds to Russian JSC Alfa-Bank (Alfa), rated Long-term local and foreign currency Issuer Default Ratings (IDR) 'BB+'/Negative, Short-term IDR 'B', Viability Rating 'bb+', Support Rating '4', Support Rating Floor 'B' and National Long-term rating 'AA+(rus)'/Stable.

There are no financial covenants in the facility agreement except compliance with regulatory capital requirements. The terms of the issue include an event of default clause in case the parent company ABH Financial Limited (ABHFL, BB/Negative) or its successor (in case of potential re-organisation) ceases to control more than 50% of Alfa. The loan/notes will not be guaranteed by ABHFL.

KEY RATING DRIVERS
The expected rating of the issue is driven by Alfa's Long-term Issuer Default Ratings (IDR) of 'BB+'.

RATING SENSITIVITIES
The rating of the issue is likely to move in tandem with Alfa's Long-term IDR.