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RPT-Fitch assigns Vnesheconombank's RUB20bn exchange bonds 'BBB' rating

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Wed Jul 31, 2013 6:56am EDT

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July 31 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has assigned Vnesheconombank's (VEB; BBB/Stable/F3) RUB20bn senior unsecured exchange bonds series BO-01, due in July 2016, a Long-term local currency rating of 'BBB'.

The bonds have a put option in July 2015. The coupon rate of the first two years has been set at 7.65%.

KEY RATING DRIVERS

VEB's ratings are driven by a high probability of support from the Russian sovereign (BBB/Stable/F3), due to its sole ownership by the state, its status as a national development bank, the special legal regime, the directed nature of some operations and the significant amount of funding and capital provided by the state.

RATING SENSITIVITIES

An upgrade/downgrade of Russia will warrant a similar rating action on VEB.

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