Credit rating rationale. The issue is a senior unsecured debt instrument of KAMAZ PTC (hereinafter, KAMAZ or the Company). In view of 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 obligations of the Company. According to ACRA’s methodology, the issue’s credit rating is on par with that of the Company — A+(RU).
The credit rating of KAMAZ reflects the high assessment of state support to the Company, its strong market position, high level of corporate governance, strong geographic diversification, and very strong liquidity. The credit rating is constrained by the medium assessments of the business profile, business size, profitability, and leverage, and the low assessment of coverage.
KAMAZ is a leader in the Russian heavy-duty truck market. In 2021, the Company’s share in the segment of 14+ tons gross vehicle weight trucks was 44%, including a 57% market share in the chassis and custom vehicles market, 38% in dump trucks, 79% in high-sided trucks, and 33% in tractor units (including 31% in the long-haul tractors).
key issue properties
|
Borrower |
KAMAZ PTC |
|
Issuer’s credit rating |
А+(RU), outlook Stable |
|
Actual issuer |
KAMAZ PTC |
|
Type of security |
Uncertificated non-convertible interest-bearing bonds subject to centralized title registration, |
|
Issue volume |
RUB 7 bln |
|
ISIN/RegS |
RU000A104ZC9/4B02-10-55010-D-001P |
|
Placement start date |
July 22, 2022 |
|
Maturity date |
July 18, 2025 |
Sources: 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 of the Russian Federation and the Key Concepts Used by Analytical Credit Rating Agency within the Scope of Its Rating Activities.
A credit rating has been assigned to the BO-P10 series bond (RU000A104ZC9) issued by KAMAZ PTC for the first time. The credit rating and its outlook are 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 KAMAZ PTC, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and KAMAZ PTC participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to KAMAZ PTC. No conflicts of interest were discovered in the course of credit rating assignment.
