Moody's rates Russian Agriculture Bank notes Baa1

Moody's Investors Service said it assigned a provisional Baa1 long-term foreign-currency rating to the upcoming issue of senior unsecured loan participation notes by Russian Agricultural Bank that is expected to be issued under an already established program. The program is currently at Baa1 and the size of this program has recently been increased by the bank to $7 billion from $5 billion.

The notes are expected to be issued for the period of up to five years on a limited-recourse basis by RSHB Capital SA, a Luxembourg-based special purpose vehicle with the sole purpose of funding loans to Russian Agricultural Bank.

The rating is based on the bank's fundamental credit quality and takes into account all relevant country risks, Moody's said.

The agency said it believes external support for the bank from the Russian government would be forthcoming in the event of need, reflecting the bank's key role in the execution of government policy for financing the development of agribusiness in Russia, together with its 100% state ownership.

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