Fitch rates Gaz Capital LPNs BBB(EXP)

Fitch Ratings said it assigned Gaz Capital SA's loan participation notes an expected senior unsecured BBB(EXP) rating.

The planned notes are the 33rd series to be issued under Gaz Capital's $40 billion debt issuance program rated BBB by Fitch.

The final rating is contingent upon the receipt of final documentation conforming materially to information already received and details regarding the amount and tenor.

The LPNs are issued on a limited recourse basis for the sole purpose of funding a loan by Gaz Capital to OAO Gazprom.

The proceeds from the loan are expected to be used by Gazprom for general corporate purposes. The noteholders will rely solely on Gazprom's credit and financial standing for the payment of obligations under the notes.

Fitch said Gazprom's ratings reflect its expectations that it will continue benefiting from at least flat European gas sales under long-term contracts with gas prices largely linked to that of oil products, until at least the middle of the decade.

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