The credit rating of "Element Leasing" LLC (hereinafter, Element Leasing, or the Company) reflects the Company’s adequate business profile, strong capital adequacy, strong risk profile, and satisfactory funding and liquidity assessment.

Element Leasing is a leasing company focused on the financial lease of commercial-purpose vehicles, construction machinery and equipment mostly to small and medium-sized enterprises. The ultimate beneficiary is T. Polyakova, who owns a 99.99% stake in the Company.


Adequate business profile. ACRA notes the Company's strong competitive advantages and significant operational experience in truck leasing business, which allows it to maintain its leading positions in this segment. After a shrink in the Company's leasing portfolio in 2020, which was associated with a limited number of contracts made with customers representing industries most exposed to pandemic risks, the portfolio has been recovering this year, and its quality has remained high. As of September 30, 2021, the Company’s lease portfolio was 15% larger than in early 2021 and amounted to RUB 15.6 bln, with the share of the car and truck segment at 64% and the share of the bus segment at 14%. The lease portfolio is highly diversified by customer (the ten largest customers account for a 6.5% share) and geography of business. The quality of corporate governance and risk management is assessed as adequate.

Strong capital adequacy. For 9M 2021, the capital adequacy ratio (CAR) remained high at 21%. The average capital generation ratio (ACGR) has stood at 248 bps for the last five years. In accordance with ACRA’s criteria, the combination of these indicators has resulted in the high assessment of the Company’s capital adequacy.

Strong risk profile. ACRA notes that the Company has maintained the high quality of its leasing portfolio, regardless the harsh conditions in the economy over the past two years. As of September 30, 2021, the portfolio contained almost no lease contracts with payments overdue for 90+ days. In ACRA’s opinion, the share of potentially problem receivables is low (about 1%, like a year ago). Market and operational risks are insignificant.

Satisfactory funding and liquidity. The Company's funding sources are moderately diversified. In 2021, the Company issued a bond, so that as of September 30, 2021, the Company’s liabilities included bonds (47% of total liabilities) and bank loans (22% of total liabilities). ACRA notes that the diversification by lender is high, with the largest lender / top five lenders occupying a 7% / 18.5% share in the Company’s liabilities, respectively.

The Company has a comfortable liquidity position. In ACRA’s base case scenario (taking into account the Company’s new business growth plans), the Company shows an insignificant positive cash reserve in each calendar quarter in the 12 to 24-month horizon (the estimated liquidity ratio is around 1.0). In ACRA’s stress scenario, the liquidity shortage is substantial, but the Company’s specialization allows it to manage cash flows by regulating the number of newly concluded lease contracts.


  • Maintaining the current business model within the 12 to 18-month horizon;

  • CAR of at least 15% within the 12 to 18-month horizon;

  • The share of problem and potentially problem lessees in the leasing portfolio below 5%.


The Stable outlook assumes that the rating will most likely stay unchanged within the 12 to 18-month horizon.

A positive rating action may be prompted by:

  • Considerably strengthened positions in the leasing market;

  • Higher diversification of the lease portfolio by type of property.

A negative rating action may be prompted by:

  • Substantially lower CAR due to active business growth or an increase in the cost of risk;

  • Lower capital generation capacity;

  • Material deterioration in the quality of the lease portfolio;

  • Deterioration in the liquidity position.


SCA: a-.

Adjustments: none.

Support: none.


"Element Leasing" LLC, 001P-02 series (RU000A100A41), maturity date: April 19, 2022, issue volume: RUB 5 bln — А-(RU).

"Element Leasing" LLC, 001P-03 series (RU000A102VW0), maturity date: March 19, 2024, issue volume: RUB 4 bln — А-(RU).

Rationale. The issues are senior unsecured debt instruments of the Company. Due to the absence of either structural or contractual subordination of the issues, ACRA regards them 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 on unsecured debt belongs to category II; therefore, the credit rating of the above issues is equivalent to that of "Element Leasing" LLC, i.e. A-(RU).


The credit ratings have been assigned to "Element Leasing" LLC and the bonds issued by "Element Leasing" LLC (RU000A100А41, RU000A102VW0) under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Leasing Companies 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 Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments under the National Scale for the Russian Federation was also used to assign the credit rating to the issues listed above.

The credit ratings assigned to "Element Leasing" LLC and the bonds issued by "Element Leasing" LLC (RU000A100А41, RU000A102VW0) were published by ACRA for the first time on January 19, 2018, April 23, 2019, and March 23, 2021, respectively. The credit rating of "Element Leasing" LLC and its outlook and the credit ratings of the bonds issued by "Element Leasing" LLC (RU000A100А41, RU000A102VW0) are expected to be revised within one year following the publication date of this press release.

The credit ratings were assigned based on the data provided by "Element Leasing" LLC, information from publicly available sources, as well as ACRA’s own databases. The rating analysis was performed using the consolidated IFRS statements of "Element Leasing" LLC and the financial statements of "Element Leasing" LLC drawn up in compliance with RAS. The credit ratings are solicited, and "Element Leasing" LLC participated in their assignment.

In assigning the credit ratings, 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 ancillary services to "Element Leasing" LLC. No conflicts of interest were identified in the course of credit rating assignment.

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