ACRA ASSIGNS eAAA(RU) TO THE SERIES BO-003P-22 BOND ISSUE OF GAZPROM CAPITAL LLC

Expected credit rating rationale. PJSC “GAZPROM” (hereinafter, Gazprom, the Company, or the Group; ACRA rating AAA(RU), outlook Stable) acts as the guarantor for the series BO-003P-22 bond issue of Gazprom capital LLC. Due to the absence of either structural or contractual subordination of the issue, ACRA regards it as equal to other existing and future unsecured and unsubordinated debt obligations of Gazprom in terms of priority. As per ACRA’s methodology, the simplified approach was used to determine the expected credit rating, according to which the recovery rate for the issue corresponds to category II, and therefore the expected credit rating of the issue is equal to the credit rating of Gazprom — AAA(RU) — and is set at eAAA(RU).

Gazprom’s credit rating is based on the very high assessment of support to the Company from the state. The Company’s standalone creditworthiness is determined taking into account the very high assessment of operational profile, low industry risk, and strong financial profile. Gazprom is one of the largest integrated energy companies in the world, and ranks first globally in terms of gas production. The Group is among the largest oil producers in Russia (through Gazprom Neft PJSC, ACRA rating: AAA(RU), outlook Stable). Gazprom owns major power generation assets via Gazprom Energoholding. The Group also owns a gas pipeline network with a total length of 181,600 km.

key issue properties

Sources: ACRA, issuer’s data

REGULATORY DISCLOSURE

The expected credit rating has been assigned to the issue of Gazprom capital LLC based on the following methodologies: the Methodology for Assigning Credit Ratings to Financial Instruments under the National Scale for the Russian Federation to determine the expected credit rating of the bond issue under the national scale for the Russian Federation and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities to ensure consistent and uniform application of ACRA’s methodologies, rating scales, models, and key rating assumptions.

An expected credit rating of the issue (registration number 4B022236400R003P) assigned under the national scale for the Russian Federation has been published for the first time.

The next rating action is expected within one year.

ACRA will assign a credit rating to the issue (registration number 4B022236400R003P) after the final documentation is presented. In case of any significant discrepancies between the final documentation and the preliminary materials, ACRA may change the issue’s credit rating against the expected credit rating.

The expected credit rating was assigned based on data provided by Gazprom capital LLC, information from publicly available sources, and ACRA’s own databases.

The expected credit rating is solicited and Gazprom capital LLC participated in its assignment.

In assigning the expected 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 no additional services to Gazprom capital LLC during the year preceding the rating action.

No conflicts of interest were discovered in the course of the expected credit rating assignment.