Fitch rates loan to Bank of Moscow at BB+

Fitch Ratings said it has assigned Kuznetski Capital SA's upcoming issue of limited recourse loan participation notes an expected long-term BB+ rating. The notes are to be used solely for financing a subordinated loan to Russia's Bank of Moscow (long-term BBB-, short-term F3, support 2, individual D).

The difference between the rating of the notes and Bank of Moscow's long-term rating reflects Fitch's notching policy for senior and more junior obligations, indicating the higher expected loss for more junior debt instruments, Fitch said.

The lender's claims in relation to repayment of the subordinated loan will be junior to those of all senior claims and will rank at least pari passu with the claims of other subordinated creditors of Bank of Moscow, Fitch said.

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