Fitch rates GTLK Europe notes BB

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

GTLK Europe Capital is a financing special purpose entity of GTLK Europe DAC, an Irish subsidiary of PJSC State Transport Leasing Co. (STLC), which was established as an operating entity utilizing the favorable tax and regulatory regimes of Ireland for the leasing of aircraft and ships, Fitch explained.

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 STLC and GTLK Europe, the agency said

The proceeds will be used for general corporate purposes, including refinancing current outstanding dollar-denominated borrowings, Fitch said.

The rating is equalized with STLC's long-term foreign-currency issuer default rating, reflecting a view that STLC, 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 said.

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