Expected credit rating rationale. The issue represents senior unsecured debt of International Bank of Economic Co-operation (hereinafter, IBEC). 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 IBEC in terms of priority. According to ACRA’s methodology, the credit rating of the issue is equivalent to that of IBEC, i.e. AAA(RU), therefore the expected rating is eAAA(RU).
IBEC’s issuer rating is based on its strong intrinsic financial strengths that stem from strong capital adequacy, a satisfactory risk profile, and adequate liquidity and funding.
Key issue properties
| Borrower/Actual issuer | International Bank of Economic Co-operation |
| Type of security | Series 001P-02 exchange-traded bond |
| Issue volume | RUB 5 bln |
| Bookbuilding start date | June 4, 2020 |
| Preliminary date of placement | June 2020 |
| Maturity | 10 years |
Regulatory disclosure
ACRA will assign a credit rating to series 001P-02 bond (Exchange-Traded Bond Program ID No. 4-00004-L-001P-02E dated May 18, 2018) after the final documentation is presented by International Bank of Economic Co-operation.
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. 4-00004-L-001P-02E dated May 18, 2018) 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.
An expected credit rating has been assigned to series 001P-02 bond (Exchange-Traded Bond Program ID No. 4-00004-L-001P-02E dated May 18, 2018) issued by International Bank of Economic Co-operation 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 Bank of Economic Co-operation, information from publicly available sources, and ACRA’s own databases. The expected credit rating is solicited, and International Bank of Economic Co-operation participated in its assignment.
No material discrepancies between the provided data and data officially disclosed by International Bank of Economic Co-operation in its financial statements have been discovered.
ACRA provided no additional services to International Bank of Economic Co-operation. No conflicts of interest were discovered in the course of the expected credit rating assignment.
