Fitch rates Gazprom notes BBB-

Fitch Ratings said it assigned Gazprom International SA's $1.25 billion 7.201% structured export fixed-rate notes due February 2020 a final BBB- rating.

The rating addresses the timely payment of interest and ultimate payment of principal by the legal final maturity date of Feb. 1, 2020.

This is a structured export note program set up by Gazprom International SA, located in Luxembourg. The transaction is structured as a loan to Gazprom, which is secured by an assignment of the future export receivables due to OJSC Gazprom, a company based in the Federation of Russia, from obligors located in Western Europe.

Fitch's rating addresses the likelihood that cash flows generated by the assigned receivables will be sufficient to make timely interest payments and ultimate principal repayments on the notes over the life of the transaction. This is based in part on stresses applied to gas prices, based on historical data, as well as delivery volumes below the minimum contractual amounts.

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