Possible upgrade for Jetfinance Bulgaria on BNP interest

Moody’s Investors Service has placed on review for possible upgrade the B2/Not-Prime long-term and short-term issuer rating and senior unsecured debt ratings of Jetfinance International (JFI) AD — Bulgaria‘s largest consumer finance company.
This results from the announcement that BNP Paribas’ consumer credit unit — Cetelem — will be acquiring a 100% ownership stake in JFI. The transaction, which is subject to approvals from the competent authorities, is expected to be completed in the fourth quarter of 2007.

Moody’s said that its rating review will assess the level of support to be imputed from the new shareholder. Moody’s notes, however, that for the short-term rating to be upgraded, the level of support from the ultimate parent has to be very high. According to the rating agency, Cetelem’s involvement in JFI is also expected to contribute to the latter’s franchise enhancement in the medium- to long-term. The review is expected to be concluded once the deal is finalised.

Headquartered in Sofia, Bulgaria, Jetfinance International AD had total consolidated assets of EUR 109.5 mln as of 31 December 2006.