Fitch rates Gazprom notes BBB-

Fitch Ratings said it affirmed Gaz Capital SA's loan notes program rating at BBB-, following the increase in the size of the program to $30 billion from $15 billion. The agency said it also assigned Gaz Capital's proposed issue of the 12th and 13th tranche of the program an expected BBB- rating.

Under the program, noteholders rely on a senior unsecured liability of OAO Gazprom (rated BBB- with positive outlook) for repayment. The final rating is contingent upon final documents.

Despite the large increase of the program size, Fitch said it expects the overall impact on Gazprom's financial profile and credit ratios to be manageable.

While year-end 2006 figures show improvements in Gazprom's financial profile, the agency said the high volume of acquisition activity and related funding has the potential to cause a reversion.

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