Fitch gives BB to GTLK Europe notes

Fitch Ratings said it assigned GTLK Europe Capital DAC's upcoming issue of dollar-denominated guaranteed notes an expected BB(EXP) rating.

GTLK Europe Capital is a financing special purpose entity of GTLK Europe DAC (GTLK Europe), an Irish subsidiary of Russia-based PJSC State Transport Leasing Co. (BB/positive).

The notes will represent direct, unsubordinated and unsecured obligations of GTLK Europe Capital and will benefit from unconditional and irrevocable, joint and several guarantees from both of State Transport and GTLK Europe.

Proceeds will be used mainly for general corporate purposes, including refinancing current outstanding dollar-denominated borrowings.

The notes' rating is equalized with State Transport’s long-term foreign-currency issuer default rating, reflecting Fitch's view that State Transport, if required, would have a very strong propensity to honor the obligation under the guarantee due to its publicly expressed commitment to do so, and potential reputational damage from not honoring the obligation, the agency explained.

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