Fitch rates Gazpromban LPNs BBB-

Fitch Ratings said it assigned Gazprombank's RMB 1 billion senior unsecured loan participation notes a long-term foreign currency rating of BBB-.

The LPNs are issued through an Ireland-based special purpose entity, GPB Eurobond Finance plc. Obligations under the loan rank pari passu with GPB's other senior unsecured obligations and are subordinated to retail deposits according to the Russian banking law.

The LPNs carry a fixed coupon rate of 4.25% payable semi-annually and mature on Jan. 30, 2017. The issue has been approved for listing and trading on the Irish Stock Exchange.

The bonds' rating is aligned with Gazprombank's's BBB- long-term issuer default rating, which reflects Fitch's view of a high probability of the bank receiving support, if needed, from the Russian Federation (BBB/stable) or state-controlled entities, most notably OAO Gazprom (BBB/stable), the bank's founder and minority shareholder.

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