Fitch applies BBB- to Gazprom LPNs

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

The planned notes are the 41st series to be issued under Gaz Capital's $40 billion debt issuance program, which is rated BBB-.

The LPNs will be issued on a limited recourse basis for the sole purpose of funding a loan by Gaz Capital to PJSC Gazprom (BBB-/stable).

Gazprom is expected to use the proceeds 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 the LPNs are rated at the same level as Gazprom's issuer default rating on the basis that the loan will represent an unsecured and unsubordinated obligation of the company.

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