Fitch rates Gazprom notes BBB

Fitch Ratings said it assigned a final senior unsecured rating of BBB to Gaz Capital SA's loan participation notes.

The £500 million 5.338% notes due 2020 are the 33rd series issued under Gaz Capital's $40 billion debt issuance program, which also has a BBB rating.

The loan participation notes are issued on a limited recourse basis for the sole purpose of funding a loan by Gaz Capital to OAO Gazprom, Fitch said.

The proceeds are expected to be used by Gazprom for general corporate purposes.

The noteholders will rely solely on Gazprom's credit and financial standing for the payment of obligations under the notes, the agency said. Gaz Capital is a special purpose financing vehicle of Gazprom, but is not directly or indirectly a subsidiary.

The ratings reflect an expectation that the company will continue benefiting from at least flat European gas sales under long-term contracts with gas prices largely linked to that of oil products, until at least the middle of the decade, Fitch said.

Gazprom may soon lose its monopoly on liquefied natural gas exports from Russia, the agency said. But Fitch said it believes the company's production scale and conservative debt profile give it enough flexibility to maintain strong credit metrics.

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