Credit rating rationale. BO-P03 series bond is a senior unsecured debt of PIK Group Public Joint Stock Company (the Company). Due to the absence of either structural or contractual subordination of the bond, ACRA ranks the bonds pari passu with other existing and future unsecured and unsubordinated debt obligations of the Company. According to the ACRA methodology, the reimbursement rate for unsecured debt relates to category II; hence, the bond issue is assigned the credit rating BBB+(RU), on par with the credit rating assigned to the Company.
The credit rating of the Company is based on its strong business profile, high business profitability, strong cash flow, high corporate governance quality, low leverage, and very strong liquidity. At the same time, very high industry risk and medium debt service indicators put pressure on the credit rating of the Company.
Key issue properties
| Borrower | PIK Group Public Joint Stock Company |
| Issuer credit rating | BBB+(RU), outlook Stable |
| Actual issuer | PIK Group Public Joint Stock Company |
| Type of security | Exchange-traded interest-bearing certified unregistered bond, |
| Issue volume | RUB 10 billion |
| ISIN / RegS | RU000A0JXY44 / 4B02-03-01556-А-001Р |
| Final placement date | August 04, 2017 |
| Maturity date | July 29, 2022 |
Regulatory disclosure
The credit rating has been assigned under the national scale for the Russian Federation and is based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments under the National Scale of 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 BO-P03 series bond issued by PIK Group Public Joint Stock Company for the first time. The credit rating is expected to be revised within one year following the rating action date (September 26, 2017).
The assigned credit rating is based on the data provided by PIK Group Public Joint Stock Company, information from publicly available sources, as well as ACRA’s own databases. The credit rating is solicited, and PIK Group Public Joint Stock Company participated in its assignment.
No material discrepancies between the provided data and the data officially disclosed by PIK Group Public Joint Stock Company in its financial statements have been discovered.
ACRA provided no additional services to PIK Group Public Joint Stock Company. No conflicts of interest were discovered in the course of credit rating assignment.
