Credit rating rationale. The 001P-01 series issue represents senior unsecured debt of Setl Group, Ltd (hereinafter – the Company). Due to the absence of either structural or contractual subordination of the issues, ACRA regards them as equal to other existing and future unsecured and unsubordinated debt obligations of the Company in terms of priority. According to the ACRA methodology, the reimbursement rate for unsecured debt relates to category II; hence, the credit rating of the bond issue is equivalent to that of the Company, i.e. BBB(RU).
The credit rating of the Company is determined by its very strong business profile, its medium corporate governance level, high business profitability, low debt load, and strong liquidity. At the same time, very high industry risk and weak cash flow assessment put pressure on the Company’s credit rating level.
Key issue properties
| Issuer | Setl Group, Ltd |
| Issuer’s credit rating | BBB(RU), outlook Stable |
| Actual issuer | Setl Group, Ltd |
| Type of security | Exchange-traded interest-bearing certified unregistered bond, 001P-01 |
| Issue volume | RUB 5 bln |
| ISIN RegS | RU000A0ZYEQ9 / 4B02-01-36160-R-001P |
| Final placement date | November 2, 2017 |
| Maturity date | October 27, 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 001P-01 series bond of Setl Group, Ltd for the first time. The credit rating is expected to be revised within one year following the rating action date (November 1, 2017).
The assigned credit rating is based on the data provided by Setl Group, Ltd, information from publicly available sources, as well as ACRA’s own databases. The credit rating is solicited, and Setl Group, Ltd participated in its assignment.
No material discrepancies between the provided data and the data officially disclosed by Setl Group, Ltd in its financial statements have been discovered.
ACRA provided no additional services to Setl Group, Ltd. No conflicts of interest were discovered in the course of credit rating assignment.
