Fitch gives RVK-Finans bond BB-

Fitch Ratings said it assigned RVK-Finans' RUB1.75 billion bond due to mature in July 2011 final foreign and local currency senior unsecured ratings of BB-.

The agency said that RVK-Finans' bond benefits from sureties provided on a joint and several basis, from RVK-Invest, Krasnodar Vodokanal, Tyumen Vodokanal and Kaluzhsky Vodokanal.

RVK-Finans and these surety providers are subsidiaries of Ventrelt Holding Ltd. (BB-/stable), which is the intermediate parent of a privately owned water and waste water group, Rosvodokanal, the agency noted.

According to Fitch, Ventrelt's ratings reflect the fledgling tariff regulatory framework for water utilities, the need to improve customer collection rates, operating cost and capital expenditure risks, untested recovery prospects upon a termination of five-year investment agreements with local municipalities and other issues related to relatively new privately owned water companies operating in Russia.

© 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.