Fitch rates ProCredit bond BBB

Fitch Ratings said it assigned an expected rating of BBB to ProCredit Holding & Co. KGaA's upcoming senior unsecured green bond.

The proceeds will be used for financing "green loans" in sectors that include energy efficiency, renewable energy and environmentally friendly activities in accordance with the company's green bond framework, Fitch said.

The green bonds will be fixed-rate and euro-denominated with an expected tenor of three years, the agency noted.

The green bonds are rated at the same level as ProCredit's BBB long-term issuer default rating as they will constitute direct, unsecured and unsubordinated obligations, ranking equally with all of its other unsecured and unsubordinated obligations, Fitch said.

The ratings are driven by a view of the potential support the group can expect to receive from its core international financial institution shareholders, the agency said.

The expected green bond ratings are primarily sensitive to changes in the company's long-term issuer default rating, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.