RPT-Fitch Revises AVTODOR & Post of Russia's Outlooks to Negative; Affirms at 'BBB'

Mon Mar 24, 2014 6:15am EDT

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March 24 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has revised Russian Highways State Company - AVTODOR and Post of Russia's Outlooks to Negative from Stable and affirmed their Long-term foreign and local currency Issuer Default Ratings (IDR) at 'BBB'. A full list of rating actions is below.

Fitch has also affirmed AVTODOR and Post of Russia's senior unsecured domestic bonds, as listed below.

KEY RATING DRIVERS

The rating actions follow the revision of the Outlook on Russia's sovereign Long-term foreign and local currency Issuer Default Ratings (IDR) to Negative from Stable and affirmation of the IDRs at 'BBB' (see 'Fitch Revises Russia's Outlook to Negative; Affirms at 'BBB' dated 20 March 2014 at www.fitchratings.com).

AVTODOR and Post of Russia's ratings are equalised with those of their sponsor, Russian Federation. Fitch uses its public-sector entities (PSE) rating criteria and views AVTODOR and Post of Russia as dependent PSEs.

RATING SENSITIVITIES

The ratings of AVTODOR and Post of Russia are equalised with the sovereign's ratings so any rating action on the Russian Federation will be mirrored in the ratings of the two companies. Weakening of the companies' links with the state could also lead to negative rating action.

The rating actions are as follows:

AVTODOR

Long-term foreign currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable

Long-term local currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable

National Long-term rating affirmed at 'AAA(rus)'; Outlook Stable Short-term foreign currency IDR affirmed at 'F3'

One outstanding senior unsecured domestic bond (ISIN RU000A0JRYJ0): Long-Term local currency rating affirmed at 'BBB' and National Long-Term rating at 'AAA(rus)'. The notes benefit from a guarantee from the Russian Federation on the principal.

Post of Russia

Long-term foreign currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable

Long-term local currency IDR affirmed at 'BBB'; Outlook revised to Negative from Stable

National Long-term rating affirmed at 'AAA(rus)'; Outlook Stable

Short-term foreign currency IDR affirmed at 'F3'

Four outstanding senior unsecured domestic bonds (ISIN RU000A0JRD47, RU000A0JT8N3, RU000A0JT8T0, and RU000A0JT8R4): Long-Term local currency rating affirmed at 'BBB' and National Long-Term rating at 'AAA(rus)'.

A credit analysis on AVTODOR and Post of Russia is available at www.fitchratings.com.

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