Moody's: Novatek notes Baa3

Moody Investors Service said it assigned a provisional Baa3 rating to the Russian rouble- and U.S. dollar-denominated loan participation notes to be issued by Novatek Finance Ltd.

The company is a special purpose vehicle created for the sole purpose of on-lending the proceeds to OAO Novatek. The outlook on is stable.

The agency said the provisional Baa3 rating assigned to the proposed notes is in line with Novatek's Baa3 issuer rating, which reflects the following factors: a track record of production growth to be supported by geographical, product and customer diversification; strengthening domestic market positions due to acquisitions and new contracts; low finding and development costs and strong financial metrics; and executions risks pertaining to the company's ambitious Yamal liquefied natural gas project.

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