ACRA assigns AA-(RU) to RU000A101NQ1 bond issued by Bank RRDB (JSC)

Credit rating rationale. The issue represents senior unsecured debt of Bank RRDB (JSC) (the Bank). Due to the absence of either structural or contractual subordination of the issue, ACRA regards it as pari passu to other existing and future unsecured and unsubordinated debt obligations of the Bank. According to the ACRA methodology, the credit rating of the issue is equivalent to that of the Bank — AA-(RU).

The credit rating stems from the Bank's sustainable business profile and strong capital adequacy. The standalone creditworthiness assessment is under certain pressure from a high concentration of both assets and funding on the Bank’s affiliates, as well as from risks arising from the fast-track development strategy of the Bank.

Key issue properties

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 series 001R-04 (RU000A101NQ1) bond issued by Bank RRDB (JSC) 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 Bank RRDB (JSC), information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and Bank RRDB (JSC) participated in its assignment.

ACRA provided additional services to Bank RRDB (JSC). No conflicts of interest were discovered in the course of credit rating assignment.