ACRA ASSIGNS A(RU) TO SERIES 002P-02 (RU000A105X64) BOND OF SETL GROUP, LTD

Credit rating rationale. The issue represents senior unsecured debt of Setl Group, Ltd (hereinafter, the Company, or Setl Group). 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 detailed approach is applied. According to ACRA's estimates, the recovery rate on an unsecured debt belongs to category I, therefore, the credit rating of the issue is equivalent to that of the Company, i.e. A(RU).

The credit rating of Setl Group reflects its strong market position, business profile, and geographic diversification, as well as its large size of business, very high profitability, very low leverage, very high interest coverage, and strong liquidity. The rating is constrained by very high industry risk, and the medium assessments of corporate governance and cash flow.

Issue proceeds will be applied to develop a targeted program. According to ACRA's estimates, the issue will not affect significantly the Company's leverage and coverage metrics.

The Company is the largest residential developer in the northwestern region. In 2022, the Company sold 1.8 mln sq. m of total area, and, according to the Unified Developers Resource, its current portfolio of projects amounted to 1.7 mln sq. m as of February 1, 2023.

key issue properties

Sources: ACRA, issuer’s data

regulatory disclosure

The credit rating has been assigned to the series 002P-02 (RU000A105X64) bond of Setl Group, Ltd 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.

A credit rating has been assigned to the series 002P-02 (RU000A105X64) bond of Setl Group, Ltd 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 Setl Group, Ltd, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and Setl Group, Ltd 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 Setl Group, Ltd. No conflicts of interest were discovered in the course of credit rating assignment.