OREANDA-NEWS. S&P Global Ratings has today assigned its 'BB-' long-term rating to the proposed U. S. dollar-denominated senior unsecured loan participation notes (LPNs) to be issued by Russia-based Promsvyazbank PJSC (BB-/Negative/B) via its financial vehicle, PSB Finance S. A.

The LPNs will be issued under PSB Finance's $3 billion LPN program set up to finance loans to Promsvyazbank. The rating is subject to our analysis of the notes' final documentation.

We currently understand that the notes will mature more than one year after issuance. The final terms are to be defined at the time of the placement of notes.

We rate LPNs issued by a special purpose vehicle (SPV) at the same level as equivalent-ranking debt of the underlying borrower (the sponsor), and treat the contractual obligations of the SPV as financial obligations of the sponsor if the following conditions are met:All of the SPV's debt obligations are backed by equivalent-ranking obligations with equivalent payment terms issued by the sponsor, Promsvyazbank;The SPV is a strategic financing entity for the sponsor, set up solely to raise debt on behalf of the sponsor's group; andWe believe the sponsor is willing and able to support the SPV to ensure full and timely payment of interest and principal when due on the debt issued by the SPV, including payment of any of the SPV's expenses. Following our review, we have concluded that the proposed senior unsecured LPNs meet all these conditions, hence our decision to rate the notes 'BB-', in line with the rating on Promsvyazbank, subject to our analysis of the final documentation.