Expected credit rating rationale. The issue represents senior unsecured debt of “Element Leasing” LLC (hereinafter, Element Leasing, or the Company). Due to 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 debt obligations of the Company. According to ACRA’s methodology, the expected credit rating of the issue is equivalent to that of Element Leasing, i.e. A-(RU).
The credit rating of the Company is based on its adequate business profile, strong capital adequacy assessment, strong risk profile, and a satisfactory funding and liquidity assessment.
Key issue properties
| Borrower | “Element Leasing” LLC |
| Issuer’s credit rating | A-(RU), outlook Stable |
| Actual issuer | “Element Leasing” LLC |
| Type of security | Exchange-traded interest-bearing uncertified bond, series 001P-03 |
| Type of debt | Senior unsecured |
| Issue volume | From RUB 4 bln to 5 bln |
| Expected maturity | 3 years |
Regulatory disclosure
ACRA will assign a credit rating to “Element Leasing” LLC’s series 001P-03 bond after the final documentation is presented. In 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 “Element Leasing” LLC’s series 001P-03 bond under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments on 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.
An expected credit rating has been assigned to “Element Leasing” LLC’s series 001P-03 bond 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 was assigned based on the data provided by “Element Leasing” LLC, information from publicly available sources, as well as ACRA’s own databases. The expected credit rating is solicited, and “Element Leasing” LLC participated in its assignment.
No material discrepancies between the provided data 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.
