Expected credit rating rationale. The issue is a senior unsecured debt instrument of KAMAZ PTC (hereinafter, the Company). In view of the absence of either structural or contractual subordination of the issue, ACRA regards it as pari passu with other existing and future unsecured and unsubordinated obligations of the Company. According to ACRA’s methodology, the issue’s expected credit rating is on par with that of the Company — A+(RU).
The credit rating of KAMAZ PTC is based on the Company’s high systemic importance for the Russian economy and high level of state influence according to ACRA’s methodology. In addition, the Company boasts strong market positions, high-quality corporate governance, strong geographic diversification, strong liquidity assessments, and medium business profile, size, profitability, leverage, and coverage assessments. The credit rating is under pressure from weak cash flow indicators resulting from the Company’s current investment cycle peak.
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-P05 series |
| Issue volume | RUB 5 bln |
| Bookbuilding deadline | October 16, 2019 |
| Maturity | 3 years |
Regulatory disclosure
ACRA will assign a credit rating to the BO-P05 bond issued by KAMAZ PTC after receiving the final documentation. In the 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 has been assigned to the BO-P05 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 expected credit rating has been assigned to the BO-P05 bond issued by KAMAZ PTC for the first time. ACRA expects to assign the final credit rating within 90 days following the publication date of this press release.
The expected credit rating is based on data provided by KAMAZ PTC, information from publicly available sources, and ACRA’s own databases. The expected 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.
