Moody’s gives Gaz Capital LPNs Ba1

Moody's Investors Service said it assigned a Ba1 rating with a loss given default assessment of LGD4 to the CHF 500 million senior unsecured loan participation notes (LPNs) due in 2021 issued by, but with limited recourse to, Gaz Capital SA (Ba1 negative).

Gaz Capital has in turn on-lent the proceeds to Gazprom, PJSC (Ba1 negative) for general corporate purposes. Therefore, the noteholders will rely solely on Gazprom's credit quality to service and repay the debt.

"The Ba1 rating assigned to the notes is the same as Gazprom's corporate family rating because the notes rank on a par with the company's other outstanding unsecured debt," Denis Perevezentsev, Moody's vice president, senior credit officer and lead analyst for Gazprom, said in a news release.

LPNs were issued by Gaz Capital on Nov. 23 as series 40 under the existing $40 billion multicurrency medium-term note program (provisional Ba1) for issuing loan participation notes. The notes were issued for the sole purpose of financing a euro-denominated loan to Gazprom under the terms of a supplemental loan agreement between Gaz Capital and Gazprom supplemental to a facility agreement between the same parties dated Dec. 7, 2005.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.