Credit rating rationale. PJSC “GAZPROM” acts as a guarantor for the bonds issued by Gazprom capital LLC. The issue represents senior unsecured debt of PJSC “GAZPROM” (hereinafter – Gazprom, the Company). Due to the absence of either structural or contractual subordination of the issue, ACRA regards it as equal to with other existing and future unsecured and unsubordinated debt obligations of the Company in terms of priority. In accordance with the ACRA methodology, and taking into account high creditworthiness of the Company as well as the absence of any substantial secured debt obligations, the bond issue is rated AAA(RU), on par with the credit rating assigned to Gazprom i.e. AAA(RU).
The credit rating of the Company is based on the very high systemic importance of the Company for the Russian economy and the high level of state influence on the Company, according to the ACRA methodology. The standalone creditworthiness of the Company is determined by its very strong business profile, low industry risk and strong financial profile. The medium coverage and substantial capital expenditures and dividend payouts have a restraining effect on the standalone creditworthiness assessment (SCA).
Key issue properties
| Guarantor | PJSC “GAZPROM” |
| Guarantor’s credit rating | AAA(RU), outlook Stable |
| Actual issuer | Gazprom capital LLC |
| Type of security | Exchange-traded interest-bearing non-convertible certified bearer bonds subject to mandatory centralized custody, |
| Issue volume | RUB 15 bln |
| ISIN/RegS | RU000A100EX8/4B02-01-36400-R-001P |
| Final placement date | June 6, 2019 |
| Maturity date | June 2, 2022 |
Regulatory disclosure
The credit rating has been assigned under the national scale for the Russian Federation and is based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments Under the National Scale of the Russian Federation, and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities.
The credit rating was assigned to BO-001R-01 series bond issued by Gazprom capital LLC for the first time. The credit rating is expected to be revised within one year following the publication date of this press release.
The assigned credit rating is based on the data provided by PJSC “GAZPROM”, information from publicly available sources as well as ACRA’s own databases. The credit rating is solicited, and PJSC “GAZPROM” participated in its assignment.
No material discrepancies between the provided data and the data officially disclosed by PJSC “GAZPROM” in its financial statements have been discovered.
ACRA provided no additional services to PJSC “GAZPROM” and Gazprom capital LLC. No conflicts of interest were discovered in the course of credit rating assignment.
