OREANDA-NEWS. Fitch Ratings has today assigned Sistema Capital S.A.'s proposed guaranteed debt issuance programme an expected 'B+' rating. The programme, guaranteed by JSFC Sistema ("Sistema", rated 'B+'/Positive Outlook), will have a maturity of 30 years and may issue up to USD3 billion.

The final rating is contingent upon receipt of final documentation that is consistent with information already received by Fitch.

The programme is expected to be structured on par with Sistema's senior unsecured obligations. The draft documentation includes a number of covenants including negative pledge, limitation on leverage of up to 4x total debt to OIBDA (excluding debt of MBRD, Sistema's banking subsidiary), limitation on shareholder distributions (up to 50% of cumulative net income since 2003) and certain limitations on assets sale. Sistema has to ensure that its subsidiaries are not restricted in paying dividends and providing loans to the parent.