Moody’s rates GTLK Europe notes Ba3

Moody's Investors Service said it assigned a provisional Ba3 rating to the proposed dollar-denominated senior unsecured notes to be issued by GTLK Europe Capital DAC, which is a wholly owned direct subsidiary of GTLK Europe DAC (GTLKE) and is ultimately owned by PJSC State Transport Leasing Co. (Ba2 positive).

The outlook is positive.

The maturity, the size and the pricing of the notes are subject to prevailing market conditions during placement.

The notes will be unconditionally and irrevocably guaranteed, on a joint and several basis, by State Transport and GTLKE, and the proceeds will be used for general corporate purposes and repayment of existing debt.

Moody’s said the provisional Ba3 rating assigned to the proposed notes is one notch below State Transport’s corporate family rating) of Ba2, which reflects their structural subordination to State Transport’s substantial amount of secured debt.

The senior unsecured notes have a lower relative priority of claim than State Transport’s secured instruments on a high percentage of the company's earning assets, the agency added.

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