Fitch rates Gazprom notes BBB

Fitch Ratings said it assigned an expected foreign-currency senior unsecured BBB rating to Gaz Capital SA’s dollar-denominated loan participation notes.

The notes are issued on a limited recourse basis for the sole purpose of funding a loan from Gaz Capital to OAO Gazprom, Fitch said.

The proceeds will be used for general corporate purposes. The noteholders will rely solely on Gazprom’s credit and financial standing for the payment of obligations under the notes, the agency said.

The ratings reflect forecasts that the company will remain a vital gas supplier to Europe despite competitive and political pressures, Fitch said.

European off-takers are presently limited in their ability to diversify gas imports as Europe is coping with declining indigenous gas production and high liquefied natural gas prices, the agency said.

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