Fitch: Southern Urals Civil Construction bond BB+

Fitch Ratings said it assigned a long-term local-currency rating of BB+ to OJSC Southern Urals Civil Construction and Mortgage Corp.'s RUB 2.5 billion domestic bond issue due Feb. 23, 2016, along with a national long-term rating of AA(rus).

The Chelyabinsk region is the sole shareholder of the company and a guarantor of the principal and coupons of the issue, Fitch said. Chelyabinsk has a long-term local- and foreign-currency rating of BB+, a national long-term rating of AA(rus) and short-term foreign-currency rating of B.

The outlook is positive.

The bond issue will have a fixed-coupon rate of 10% and the principal will be repaid at maturity, Fitch said.

The proceeds will be used to refinance maturing debt and to fund construction of new apartment units in the city of Chelyabinsk, the agency said.

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