Expected credit rating rationale. The issue represents senior unsecured debt of International Investment Bank (hereinafter, IIB). Due to the absence of either structural or contractual subordination of the issue, ACRA regards it pari passu with other existing and future unsecured and unsubordinated debt obligations of IIB in terms of priority. According to ACRA’s methodology, the credit rating of the issue is equivalent to that of IIB, i.e. AAA(RU), therefore the expected rating is eAAA(RU).
IIB’s issuer rating is based on its strong intrinsic financial strengths that stem from adequate capital adequacy, an adequate risk profile, and adequate liquidity and funding.
Key issue properties
| Borrower/Actual issuer | International Investment Bank |
| Type of security | Series 001P-02 exchange-traded bond |
| Issue volume | RUB 7 bln |
| Bookbuilding start date | April 16, 2020 |
| Preliminary date of placement | April, 2020 |
| Maturity | 5 years |
Regulatory disclosure
ACRA will assign a credit rating to series 001P-02 bond (Exchange-Traded Bond Program ID No. 4-00003-L-001P-02E dated March 2, 2016) after the final documentation is presented by International Investment Bank. In the case of any significant discrepancies between the final documentation and the preliminary materials, ACRA may change the issue credit rating against the expected credit rating.
The expected credit rating has been assigned to series 001P-02 bond (Exchange-Traded Bond Program ID No. 4-00003-L-001P-02E dated March 2, 2016) under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments under the National Scale of the Russian Federation, the Methodology for Mapping Credit Ratings Assigned on ACRA’s International Scale to Credit Ratings Assigned on ACRA’s National Scale for the Russian Federation, and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities.
The expected credit rating has been assigned to series 001P-02 bond (Exchange-Traded Bond Program ID No. 4-00003-L-001P-02E dated March 2, 2016) issued by International Investment Bank for the first time. ACRA expects to assign the final credit rating within 90 days following the publication date of this press release.
The expected credit rating is based on data provided by International Investment Bank, information from publicly available sources, and ACRA’s own databases. The expected credit rating is solicited, and International Investment Bank participated in its assignment.
No material discrepancies between the provided data and data officially disclosed by International Investment Bank in its financial statements have been discovered.
ACRA provided no additional services to International Investment Bank. No conflicts of interest were discovered in the course of the expected credit rating assignment.
