ACRA has assigned the “Rating under review: developing” status to the credit ratings of JSC “GTLK” (hereinafter, GTLK or the Company) and its bond issues based on the need to carry out additional analysis of the situation related to it not being possible for Company’s subsidies (GTLK Europe DAC and GTLK Europe Capital DAC) to perform coupon payments for Eurobonds (XS2249778247, XS2131995958, XS1713473608, XS2010027451, XS2010044381, XS1577961516) in accordance with the issuance conditions due to imposed sanctions.
In particular, ACRA is analyzing the possibility of certain conditions of the aforementioned issues coming into force, the emergence of obligations for GTLK related to this fact, and the need for the Company to perform actions to fulfil the obligations in line with regulations and legislation of the Russian Federation.
GTLK’s current credit rating — AA-(RU) — is based on the very high likelihood of extraordinary support being provided by the state. The Company has moderately stable standalone creditworthiness, which is characterized by adequate assessments of the business profile and capital adequacy, a balanced funding structure, and adequate liquidity. GTLK is continuing to make timely payments on its obligations not associated with the abovementioned Eurobonds.
GTLK is a specialized leasing company focused on financial and operating lease of vehicles. Being an entirely state-owned company, GTLK is instrumental in the implementation of the state’s transportation development policy.
potential outlook or rating change factors
The “Rating under review: developing” status indicates a variety of trends: the rating may stay unchanged or be downgraded.
Removal of the “Rating under review: developing” status and affirmation of the credit rating may be prompted by:
- Confirmation that the Company is not in violation of requirements that regulate Russian issuers’ fulfilment of obligations for Eurobonds under the current conditions, taking into account the specific conditions of placement of the Eurobonds of GTLK Europe Capital DAC and GTLK Europe DAC.
Removal of the “Rating under review: developing” status and downgrading the credit rating may be prompted by:
- Confirmation that the Company has failed to fulfil obligations that may have arisen in accordance with requirements that regulate Russian issuers’ fulfilment of obligations for Eurobonds under the current conditions, taking into account the specific conditions of placement of the Eurobonds of GTLK Europe Capital DAC and GTLK Europe DAC.
RATING COMPONENTS
Standalone creditworthiness assessment (SCA): bb+.
Adjustments: none.
Support: the previously assigned credit rating takes into account the very high likelihood of extraordinary support being provided by the state; in view of this support, the Company’s rating is set at AA-(RU).
issue ratings
JSC “GTLK”, 002Р-01 series (RU000A102VR0), maturity date: March 3, 2036, issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 002Р-02 series (RU000A105KB0), maturity date: November 17, 2037, issue volume: RUB 5 bln — АA-(RU).
JSC “GTLK”, 001P-20 series (RU000A1038M5), maturity date: May 28, 2036, issue volume: RUB 7 bln — AA-(RU)
JSC “GTLK”, 001Р-19 series (RU000A101SD8), maturity date: May 23, 2035, issue volume: RUB 5 bln — АA-(RU).
JSC “GTLK”, 001Р-18 series (RU000A101SC0), maturity date: May 23, 2035, issue volume: RUB 5 bln — АA-(RU).
JSC “GTLK”, 001Р-17 series (RU000A101QL5), maturity date: May 14, 2035 issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 001Р-16 series (RU000A101GD3), maturity date: February 17, 2028, issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 001Р-15 series (RU000A100Z91), maturity date: October 21, 2025 issue volume: RUB 25 bln — АA-(RU).
JSC “GTLK”, 001P-14 series (RU000A100FE5), maturity date: May 25, 2034, issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 001P-13 series (RU000A1003A4), maturity date: January 20, 2034, issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 001P-12 series (RU000A0ZZV11), maturity date: November 4, 2033, issue volume: RUB 5 bln — АA-(RU).
JSC “GTLK”, 001P-11 series (RU000A0ZZAL5), maturity date: June 3, 2033, issue volume: USD 150 mln — АA-(RU).
JSC “GTLK”, 001P-10 series (RU000A0ZZ984), maturity date: May 20, 2033, issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 001P-09 series (RU000A0ZZ1J8), maturity date: March 18, 2033, issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 001P-08 series (RU000A0ZYR91), maturity date: January 18, 2033, issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 001P-07 series (RU000A0ZYNY4), maturity date: December 31, 2032, issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 001P-06 series (RU000A0ZYAP9), maturity date: September 1, 2032, issue volume: RUB 20 bln — АA-(RU).
JSC “GTLK”, 001P-04 series (RU000A0JXPG2), maturity date: April 6, 2032, issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 001P-03 series (RU000A0JXE06), maturity date: January 22, 2032, issue volume: RUB 10 bln — АA-(RU).
JSC “GTLK”, 001P-02 series (RU000A0JX199), maturity date: November 24, 2031, issue volume: RUB 7.78 bln — АA-(RU).
LLC “LAL-1520”, P01-BO-02 series (RU000A101D54), maturity date: January 18, 2030, issue volume: RUB 35.6 bln — AA-(RU)
Rationale. The issues represent senior unsecured debt instruments of GTLK. Due to the absence of either structural or contractual subordination of the issues, 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 unsecured debt repayment level corresponds to the second category. Therefore, the credit rating of the issues is equivalent to that of GTLK. The issue of LLC “LAL-1520” is guaranteed by a legal entity with a credit rating of AA-(RU). The “Rating under review: developing” status has been assigned to the credit rating of the Company and therefore the “Rating under review: developing” status has been assigned to the credit ratings of GTLK’s bond issues and the bond issue of LLC “LAL-1520” listed above.
regulatory disclosure
The credit ratings have been assigned to JSC “GTLK” and the bonds issues of JSC “GTLK” (ISIN RU000A0JX199, RU000A105KB0, RU000A0JXE06, RU000A0JXPG2, RU000A0ZYAP9, RU000A0ZYNY4, RU000A0ZYR91, RU000A0ZZ1J8, RU000A0ZZ984, RU000A0ZZAL5, RU000A0ZZV11, RU000A1003A4, RU000A100FE5, RU000A100Z91, RU000A101GD3, RU000A101QL5, RU000A101SC0, RU000A101SD8, RU000A102VRO, RU000A1038M5) and LLC “LAL-1520” (ISIN RU000A101D54) 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, Methodology for Analyzing Rated Entities Associated with a State or a Group, 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 Financial Instruments under the National Scale for the Russian Federation was also applied to assign credit ratings to the above issues.
The credit rating of JSC “GTLK” was published by ACRA for the first time on June 28, 2017 and the credit ratings of the bond issues of JSC “GTLK” were published by ACRA for the first time on July 25, 2017 (RU000A0JX199, RU000A0JXE06, RU000A0JXPG2), September 21, 2017 (RU000A0ZYAP9), January 23, 2018 (RU000A0ZYNY4), February 6, 2018 (RU000A0ZYR91), April 6, 2018 (RU000A0ZZ1J8), June 8, 2018 (RU000A0ZZ984), June 22, 2018 (RU000A0ZZAL5), November 23, 2018 (RU000A0ZZV11), February 7, 2019 (RU000A1003A4), June 11, 2019 (RU000A100FE5), October 28, 2019 (RU000A100Z91), February 27, 2020 (RU000A101GD3), May 29, 2020 (RU000A101QL5), June 9, 2020 (RU000A101SC0, RU000A101SD8), March 19, 2021 (RU000A102VRO), June 15, 2021 (RU000A1038M5) and December 5, 2022 (RU000A105KB0). The credit rating of the bond issued by LLC “LAL-1520” (RU000A101D54) was published by ACRA for the first time on January 31, 2020.
The credit rating of JSC “GTLK” and its outlook, as well as the credit ratings of the bond issues of JSC “GTLK” (ISIN RU000A0JX199, RU000A105KB0, RU000A0JXE06, RU000A0JXPG2, RU000A0ZYAP9, RU000A0ZYNY4, RU000A0ZYR91, RU000A0ZZ1J8, RU000A0ZZ984, RU000A0ZZAL5, RU000A0ZZV11, RU000A1003A4, RU000A100FE5, RU000A100Z91, RU000A101GD3, RU000A101QL5, RU000A101SC0, RU000A101SD8, RU000A102VRO, RU000A1038M5) and LLC “LAL-1520” (ISIN RU000A101D54) are expected to be revised by May 27, 2023.
The credit ratings were assigned based on data provided by JSC “GTLK”, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the consolidated IFRS financial statements of JSC “GTLK” and the RAS financial statements of JSC “GTLK”. The credit ratings are solicited and JSC “GTLK” participated in their assignment.
In assigning the credit ratings, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided additional services to JSC “GTLK”, ACRA provided no additional services to LLC “LAL-1520”. No conflicts of interest were discovered in the course of credit rating assignment.
