Moody's rates Gazprombank note A3

Moody's Investors Service said it assigned an A3 long-term local-currency debt rating to the ruble-denominated senior unsecured notes to be issued on a limited recourse basis by GBP Eurobond Finance plc for the sole purpose of funding a loan to Gazprombank. The issue is expected to have a tenor of three to five years.

The outlook is stable.

Noteholders will rely for repayment solely and exclusively on the ability of Gazprombank to make payments under the loan agreement. The agency said its A3 rating is based on the fundamental credit quality of Gazprombank, which is majority-owned by OJSC Gazprom and was the third-largest bank in Russia in terms of total assets and equity as of October.

Gazprombank's ratings take into account a degree of support from Gazprom, but most support would potentially come directly or indirectly from the government given the bank's systemic importance to the banking system and Gazprom's operations, Moody's noted.

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