Tashkent, Uzbekistan (UzDaily.com) -- On 22 April, S&P Global Ratings assigned its ‘B+’ rating to the senior unsecured notes issued by Uzbekistan-based UzAuto Motors JSC (UAM; B+/Stable/B). 

“We aligned the rating on the notes to the long-term issuer credit rating because the notes will not be structurally or contractually subordinated to any other debt instrument after the issuance. Moreover, the notes will be placed by the company, rather than through subsidiary, further limiting subordination risk,” the agency said in a statement.

UAM will use the proceeds of the notes to finance its sizeable capital investments program. This relate mainly to the Global Emerging Markets platform, which entails equipment renewal to retire old models and start production of General Motors models designed for emerging markets. 

The company will also partially refinance its outstanding debt. This transaction should extend the group’s maturity profile while providing additional liquidity to the group.