ACRA ASSIGNS A+(RU) TO THE BOND ISSUES (RU000A105104, RU000A105112) OF UC RUSAL, IPJSC

Credit rating rationale. The bond issues are senior unsecured debt instruments of UC RUSAL, IPJSC (hereinafter, RUSAL, the Holding, or the Company). Due to the absence of either structural or contractual subordination of the issue, ACRA regards them as pari passu to other existing and future unsecured and unsubordinated debt obligations of the Company. According to ACRA’s methodology, the credit rating of the issues is equal to the credit rating of the Company and is set at A+(RU).

The credit rating of the Holding is driven by its strong market position as a global aluminum manufacturer, and strong business profile, which in turn is driven by low production costs and a vast resource base. At the same time, the product diversification assessment is below medium, since RUSAL focuses exclusively on the production of aluminum and aluminum alloys. The rating is supported by the very strong assessment of geographic diversification of sales and the high level of corporate governance, as well as the very high score for the Concentration on a Single Minefield sub-factor. The Holding’s rating is constrained by the medium weighted free cash flow and medium scores for leverage and coverage.

key issue properties (RU000A105104)

Sources: ACRA, issuer’s data

key issue properties (RU000A105112)

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 Credit Ratings Assignment to Non-Financial Corporations under 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 BO-05 series (RU000A105104) and the BO-06 series (RU000A105112) bonds of UC RUSAL, IPJSC 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 UC RUSAL, IPJSC, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and UC RUSAL, IPJSC 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 UC RUSAL, IPJSC. No conflicts of interest were discovered in the course of credit rating assignment.