Fitch: Gaz Capital notes BBB

Fitch Ratings said it assigned a final senior unsecured rating of BBB to Gaz Capital SA's loan participation notes.

The $800 million 3.85% notes due 2020 are the 28th series and the $900 million 4.95% notes due 2028 are the 29th series issued under Gaz Capital's $30 billion debt issuance program, which has a BBB rating.

The notes 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, the agency said.

Gaz Capital is a special purpose financing vehicle of Gazprom, but is not directly or indirectly a subsidiary.

The ratings reflect the company's strong operating profile, Fitch said.

The company compares favorably with international oil and gas majors and Russian peers based on its position as the leading gas producer in the world, the agency said.

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