MOSCOW, July 9 - Fitch Ratings has assigned IUD Finance Plc's proposed issue of $350 million to $500 million of loan participation notes expected senior unsecured 'B+' and Recovery 'RR4' ratings. The notes will benefit from surety from three group entities, including the parent company Corporation Industrial Union of Donbass ("IUD"). The expected rating is in line with IUD's Long-term Issuer Default 'B+' rating with Stable Outlook, which along with IUD's Short-term Issuer Default 'B' rating is affirmed today. The final rating on the notes is contingent on the receipt of final documentation conforming to information already received and further details regarding the amount and tenor.

The notes are unsecured obligations of the issuer that rank equally with other unsecured obligations and will have the benefit of a trust deed. IUD intends to use the proceeds of the bond issue to retire the group's $150-million credit-linked notes, repay a new bridge loan of $200-million that was drawn in H107, and to fund capital expenditure needs. IUD Finance Plc is an SPV incorporated in England and Wales.