Credit rating rationale. The issue is a senior unsecured debt instrument of KAMAZ PTC (the Company). In view of the absence of either structural or contractual subordination of the issue, ACRA assesses it pari passu with other existing and future unsecured and unsubordinated obligations of the Company. According to the ACRA methodology, the credit rating of the issue is on par with that of the Company — A+(RU).
The credit rating of KAMAZ PTC is based on high systemic importance of the Company for the Russian economy and a high level of state influence, according to the ACRA methodology. In addition, the Company enjoys strong market positions and has high-quality corporate governance, strong geographic diversification, strong liquidity assessments, and medium assessments of business profile, size, profitability, leverage and coverage. The credit rating is under pressure from weak cash flow indicators resulting from the investment cycle peak that the Company is currently in.
Key issue properties
| Borrower | KAMAZ PTC |
| Issuer credit rating | А+(RU), outlook Stable |
| Actual issuer | KAMAZ PTC |
| Type of security | Exchange-traded interest-bearing non-convertible certified bearer bonds subject to mandatory centralized custody, BО-P04 series |
| Issue volume | RUB 3 bln |
| ISIN / RegS | RU000A100K49/4B02-04-55010-D-001P |
| Placement start date | July 10, 2019 |
| Maturity date | July 06, 2022 |
Regulatory disclosure
The credit rating has been assigned to BO-P04 (ISIN RU000A100K49) bond issued by KAMAZ PTC 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 credit rating has been assigned to BO-P04 (ISIN RU000A100K49) bond issued by KAMAZ PTC 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 is based on data provided by KAMAZ PTC, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and KAMAZ PTC participated in its assignment.
No material discrepancies between the provided data and data officially disclosed by KAMAZ PTC in its financial statements have been discovered.
ACRA provided no additional services to KAMAZ PTC. No conflicts of interest were discovered in the course of credit rating assignment.
