Credit rating rationale. The issue represents senior unsecured debt of JSC Russian Agricultural Bank (hereinafter, Russian Agricultural Bank, or the Bank). 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 Bank. According to ACRA’s methodology, the credit rating of the issue is equivalent to that of Russian Agricultural Bank, i.e. AA(RU).

The credit rating of the Bank is based on its high systemic importance for the Russian economy and the very strong degree of state influence on the Bank. The Bank’s standalone creditworthiness assessment (SCA) is satisfactory. The Bank’s SCA reflects the low capital adequacy assessment, the weak risk profile assessment, as well as the moderately strong business profile assessment and adequate liquidity and funding.

Key issue properties

Borrower

JSC Russian Agricultural Bank

Issuer’s credit rating

AA(RU), outlook Stable

Actual issuer

JSC Russian Agricultural Bank

Type of security

Uncertificated non-convertible exchange-traded interest-bearing bond subject to centralized title registration, BО-10-002P series

Type of debt

Senior unsecured

Issue volume

RUB 10 bln

ISIN

RU000A103GX7

RegS

4B02-07-03349-B-002P as of December 8, 2020

Placement start date

August 5, 2021

Maturity date

August 1, 2024

Source: ACRA, issuer’s data

Regulatory disclosure

The credit rating has been assigned 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 for 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 the BО-10-002P series bond (RU000A103GX7) of JSC Russian Agricultural Bank 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 was assigned based on data provided by JSC Russian Agricultural Bank, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and JSC Russian Agricultural Bank participated in its assignment.

In assigning the credit rating, ACRA used only information, the quality and reliability of which was, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.

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