Credit rating rationale. The bond represents senior unsecured debt of “TransFin-M” PC (hereinafter — TransFin-M, or the Company). Due to the absence of either structural or contractual subordination of the bond, ACRA ranks the bond pari passuwith other existing and future unsecured and unsubordinated debt obligations of the Company.According to the ACRA methodology, the reimbursement rate for unsecured debt corresponds to category II; hence, the bond issue is assigned the credit rating A-(RU), on par with the credit rating assigned to TransFin-M.
The credit rating of TransFin-M (A-(RU)) is based on a moderate standalone creditworthiness assessment and a high likelihood of extraordinary support from the parent company, non-state pension fund “BLAGOSOSTOYANIE.” Compared to other Russia-based issuers, the Company’s creditworthiness is assessed as high.
Key issue properties
| Borrower | “TransFin-M” PC |
| Issuer’s credit rating | A-(RU), outlook Developing |
| Actual issuer | “TransFin-M” PC |
| Type of security | Exchange-traded interest-bearing certified unregistered bond, 001P-06 |
| Issue volume | RUB 5 bln |
| ISIN | RU000A100TS6 |
| Final placement date | September 16, 2019 |
| Maturity date | September 3, 2029 |
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.
A credit rating has been assigned to 001P-06 series bond issued by “TransFin-M” PC 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 “TransFin-M” PC, information from publicly available sources, as well as ACRA’s own databases. The credit rating is solicited, and “TransFin-M” PC participated in its assignment.
No material discrepancies between the provided data and the data officially disclosed by “TransFin-M” PC in its financial statements have been discovered.
ACRA provided additional services to “Transfin-M” PC. No conflicts of interest were discovered in the course of credit rating assignment.
