Moody’s assigns Gazprom notes Ba1

Moody’s Investors Service said it assigned a Ba1 rating to the proposed junior subordinated dollar-denominated loan participation notes to be issued by, but with limited recourse to, Gaz Finance plc.

“The Ba1 rating assigned to the proposed hybrid notes is two notches below Gazprom’s baa2 baseline credit assessment (BCA) and its Baa2 long-term issuer rating, which reflects Moody’s view that the notes will be deeply subordinated to the senior unsecured obligations of Gazprom group and will rank senior only to Gazprom’s common shares and pari passu with its preferred shares (Gazprom currently does not have any outstanding preferred shares),” Moody’s said in a press release.

Gaz Finance will lend the proceeds to Gazprom, PJSC, which will use them for general corporate purposes.

“Therefore, the noteholders will rely solely on Gazprom’s credit quality to service and repay the debt,” Moody’s said.

The other ratings and outlooks of Gazprom, Gaz Capital SA and Gaz Finance remain unchanged.

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