OREANDA-NEWS. Fitch Ratings has today assigned PSB Finance S.A.'s upcoming subordinated notes issue, expected to be of at least USD100 million and due May 2012, expected ratings of Long-term 'B-' (B minus) and Recovery 'RR6'.

The final ratings of the issue are contingent on receipt of final documentation conforming materially to information already received.

Separately, PSB's Issuer Default rating has been upgraded today to 'B+' from 'B'. The expected 'B-' (B minus) rating of the subordinated notes is in line with Fitch's standard notching practice for subordinated instruments of issuers with IDRs of 'B+' or below. Fitch has also assigned a Long-term rating of 'B+' to PSB's upcoming senior unsecured eurobond.

The proceeds are to be used for redeeming the outstanding principal of USD45 million notes (private placement notes), which finance an existing subordinated loan to Russia-based Promsvyazbank ("PSB") and for financing a new subordinated loan to PSB.