OREANDA-NEWS. Standard & Poor's Ratings Services said today that it has assigned its 'B-' rating to Luxembourg-based Kazanorgsintez S.A.'s proposed participation notes. The proceeds are to be transferred to Russian petrochemical group Kazanorgsintez OJSC (B-/Stable/--; Russia national scale ruBBB), based on a trust deed and a loan agreement.

The debt rating is equalized with the corporate credit rating on Kazanorgsintez OJSC, the borrower.

The latter does not guarantee the debt or own the issuer, which was newly created for the issue. Nevertheless, we expect that the status of the issuer, the legal framework in Luxembourg, and the trust deed will provide sufficient security for noteholders.

The issue, if successful, is expected to enable the group to lower its overall financial interest burden and enhance its debt amortization profile.