Moody's rates Bank of Moscow notes Baa1

Moody's Investors Service said it has assigned a Baa1 rating with a stable outlook to the forthcoming issue of loan participation notes by Kuznetski Capital SA for the sole purpose of funding a subordinated loan to Bank of Moscow (Baa2, stable).

The amount of the issue is expected to be $200 million to $300 million with an expected maturity of at least 10 years with a prepayment option by the borrower at least after five years.

According to Moody's, the Baa1 subordinated debt rating reflects the bank's fundamental credit quality, the probability of a sovereign default implied by the Russian government's low investment-grade Baa2 (stable outlook) foreign currency bond rating, as well as the likelihood that the bank's notes might be excluded from any possible moratorium.

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