S&P rates Novatek notes BBB-

Standard & Poor's said that it assigned a BBB- rating to proposed loan participation notes to be issued by special-purpose vehicle Novatek Finance Ltd.

The proceeds will be used to fund a loan to OAO Novatek, which will repay a RUB15 billion bank loan.

The rating on the notes is based on the pass-through of the economic benefit of the loan facility to the noteholders, S&P said.

Novatek Finance is an orphan special purpose vehicle whose activity is limited only to issuing notes and lending the proceeds to Novatek, the agency said.

These features offset that the noteholders will not have a direct claim on Novatek or its subsidiaries' cash flows or assets, S&P said.

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