Moody's rates Gazprombank notes Baa2

Moody's Investors Service said it assigned a rating of Baa2 to the loan participation notes to be issued on a limited recourse basis by GPB Eurobond Finance plc, an Irish-based orphan special purpose entity, for the sole purpose of financing a loan to Gazprombank of Russia.

The notes will be denominated in dollars, and the loan will represent a senior unsecured claim on the bank. The estimated amount of the issue is $0.5 billion.

Moody's said the Baa2 senior unsecured debt rating is based on the bank's fundamental credit quality, which is reflected in the global local currency rating and which includes all relevant country risks. Gazprombank's ratings take into account not only the potential support the bank may receive from its parent but also the likelihood that Russia's central government, which majority controls OJSC Gazprom, may extend support to Gazprombank in case of need.

The rating also addresses the risk that any such moratorium might include foreign currency on the loan provided by the issuer to Gazprombank and that the bank's debt might be particularly affected, the agency said.

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