Expected credit rating rationale. The issue represents senior unsecured debt of Samolet Group PJSC (hereinafter, the Company). Due to the absence of either structural or contractual subordination of the issue, ACRA regards it as equal to other existing and future unsecured and unsubordinated debt obligations of the Company in terms of priority. According to ACRA’s methodology, the recovery rate for unsecured debt belongs to category II, therefore the expected credit rating of the issue is equivalent to that of the Company, i.e. A-(RU), and is set at eA-(RU).

The credit rating of the Company reflects its strong business profile, high business profitability, high corporate governance quality, strong liquidity, very low leverage, and very high coverage. At the same time, the very high industry risk and average assessment of cash flow and business size put pressure on the Company’s credit rating.

Key issue properties

Borrower

Samolet Group PJSC

Issuer’s credit rating

A-(RU), outlook Stable

Actual issuer

Samolet Group PJSC

Type of security

Exchange-traded interest-bearing uncertified 

non-convertible bond subject to 

centralized title registration, BO-P10 series

Issue volume

RUB 10 bln

RegS

4B02-10-16493-A-001P

Source: ACRA, issuer’s data

Regulatory disclosure

ACRA will assign a credit rating to the BO-P10 series bond of Samolet Group PJSC after receiving the final documentation. 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 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.

The expected credit rating has been assigned to the BO-P10 series bond of Samolet Group PJSC for the first time. The next rating action is expected within 180 days following the publication date of this press release.

The expected credit rating is based on data provided by Samolet Group PJSC, information from publicly available sources, and ACRA’s own databases. The expected credit rating is solicited, and Samolet Group PJSC participated in its assignment.

In assigning the expected 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 no additional services to Samolet Group PJSC. No conflicts of interest were discovered in the course of the expected credit rating assignment.

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