Expected credit rating rationale. The issue represents a senior unsecured debt instrument of “Element Leasing” LLC (the Company). Due to the absence of either structural or contractual subordination of the issue, ACRA regards it pari passu with other existing and future unsecured and unsubordinated debt obligations of the Company. According to the ACRA methodology, the reimbursement rate for the Company's unsecured debt relates to category II; hence, the credit rating of the bond issue is equivalent to that of the Company, i.e. A-(RU).
Key issue properties
| Borrower | “Element Leasing” LLC |
| Issuer credit rating | A-(RU), outlook Stable |
| Actual issuer | “Element Leasing” LLC |
| Type of security | Exchange-traded interest-bearing certified non-convertible bearer bond subject to mandatory centralized custody, series 001P-02 |
| Issue volume | RUB 5 bln |
| Final placement date | April 23, 2019 |
| Maturity date | April 19, 2022 |
Regulatory disclosure
ACRA will assign a credit rating to series 001P-02 bond after the final documentation is presented by “Element Leasing” LLC. In case of any significant discrepancies between the final documentation and the preliminary materials, ACRA may change the issue credit rating against the expected credit rating.
The expected credit rating has been assigned to series 001P-02 bond under the national scale for the Russian Federation 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 Analytical Credit Rating Agency within the Scope of Its Rating Activities.
The expected credit rating has been assigned to series 001P-02 bond issued by “Element Leasing” LLC for the first time. ACRA expects to assign the final credit rating within 90 days following the publication date of this press release.
The credit rating is expected to be revised within one year following the publication date of this press release.
The expected credit rating is based on the data provided by “Element Leasing” LLC, information from publicly available sources, and ACRA’s own databases. The expected credit rating is solicited, and “Element Leasing” LLC participated in its assignment.
No material discrepancies between the provided information and the data officially disclosed by “Element Leasing” LLC in its financial statements have been discovered.
ACRA provided no additional services to “Element Leasing” LLC. No conflicts of interest were discovered in the course of the expected credit rating assignment.
