Tashkent, Uzbekistan (UzDaily.com) -- Fitch Ratings has assigned JSC UzAuto Motors’ (UAM; B+/Stable) upcoming US$300 million senior unsecured Eurobond an expected rating of ‘B+(EXP)’. The Recovery Rating is ‘RR4’/50%.

The bond will rank pari passu with all other unsubordinated and unsecured debt of UAM. The proceeds from the notes are expected to be used by UAM for general corporate purposes.

The assignment of the final rating is contingent on the receipt of final documentation with terms and conditions being substantially in line with the information already provided.

UAM is the dominant car producer in Uzbekistan. Fitch has applied its ‘Government-Related Entities Rating’ Criteria and assessed the linkage between UAM and its sole indirect shareholder, the Republic of Uzbekistan (BB-/Stable), as ‘Moderate-to-Strong’. This has led to a one-notch discount from Uzbekistan’s rating. Fitch assesses UAM’s Standalone Credit Profile (SCP) at ‘b’.