Credit rating rationale. The issue is an unsecured perpetual obligation of Gazprom Capital LLC (hereinafter, Gazprom Capital, or the Issuer). According to the bond issue terms, the Issuer may decide not to pay the coupon yield, and such non-payment would not give rise to any claims against the Issuer. In accordance with ACRA’s methodology, the simplified approach is applicable, according to which the issue credit rating is AA-(RU), i.e. three notches below the Issuer’s credit rating.
The credit rating of Gazprom Capital is based on the very high degree of support from PJSC “GAZPROM” (hereinafter, PJSC “GAZPROM”, the Gazprom Group; ACRA rating: AAA(RU), outlook Stable) whose creditworthiness is assessed as strong, and the high degree of dependence of these companies on homogeneous risk factors. Gazprom Capital raises funds on the Russian stock market by issuing ruble-denominated bonds for PJSC “GAZPROM”. The Issuer also holds long-term financial investments to the benefit of the Gazprom Group. Taking into consideration the tightness of connection between these companies, ACRA applied only the Methodology for Analyzing Rated Entities Associated with a State or a Group in its rating analysis of the Issuer, without determining the Issuer’s standalone creditworthiness assessment (SCA).
The credit rating of PJSC “GAZPROM” is based on the very high assessment of state support to the Gazprom Group. The standalone creditworthiness of PJSC “GAZPROM” is determined taking into account its very strong business profile, low industry risk, and strong financial profile. PJSC “GAZPROM” is one of the largest global integrated energy companies that ranks first in the world in the gas production volume. Gazprom Group is one of the largest oil producers in Russia (through Gazprom Neft PJSC, ACRA rating: AAA(RU), outlook Stable). PJSC “GAZPROM” owns major power generation assets through Gazprom Energoholding. The Gazprom Group also owns a gas pipeline network with a total length of 179,300 km.
KEY ISSUE PROPERTIES
|
Borrower |
PJSC “GAZPROM” |
|
Issuer’s credit rating |
ААА(RU), outlook Stable |
|
Actual issuer |
Gazprom Capital LLC |
|
Type of security |
Perpetual interest-bearing non-convertible uncertificated bond, series 003B-01 |
|
Issue volume |
RUB 150 bln |
|
ISIN / Reg. No. |
RU000A107C26 / 4-01-36400-R-004P |
|
Placement start date |
December 7, 2023 |
|
Maturity date |
Perpetual |
Sources: ACRA, issuer’s data
REGULATORY DISCLOSURE
The credit rating has been assigned to the series 003B-01 (RU000A107C26) bond of Gazprom Capital LLC under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Financial Instruments on 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.
A credit rating has been assigned to the series 003B-01 (RU000A107C26) bond of 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 credit rating was assigned based on data provided by PJSC “GAZPROM” and Gazprom Capital LLC, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and PJSC “GAZPROM” and Gazprom Capital LLC participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided additional services to PJSC “GAZPROM”. ACRA provided no additional services to Gazprom Capital LLC. No conflicts of interest were discovered in the course of the credit rating assignment.
