Standard & Poor’s give highest rating to Russian Railways’ series 14 bonds
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International ratings agency Standard & Poor’s has given Russian Railways’ 15 billion-rouble Series 14 bond issue a BBB rating on the international scale and a ruAAA rating on the Russian scale.
According the agency’s analysts, Russian Railways’ (RZD) ratings reflect an expectation of strong financial support for the company from the Russian Federation, RZD’s monopoly on the management of railway infrastructure and its predominance in the Russian rail transportation market. The company’s ratings continue to be positively influenced by its strong financial performance, its willingness to rein in its financial policy and the strong competitive position enjoyed by rail transport in Russia.
On 14 April 2009, JSC Russian Railways fully placed its Series 14 infrastructure bonds with a total face value of 15 billion roubles. The first coupon will be paid at a rate of 15% pa.
The placement was organized by VTB-Kapital, Gazprombank, Sberbank of Russia, TransKreditBank and Troika Dialog.
The non-convertible interest-bearing Series 14 bonds have a total face value of 15 billion roubles and a term of 6 years, and will pay 12 half-year coupons. The issue also includes an offer of early redemption after 3 years. The state registration number is No.4-14-65045-D.
The interest rate on the bonds will be adjusted every six months in line with variations in the fixed rate of direct 7-day repo transactions by the Bank of Russia.