Credit rating rationale. The bond represents senior unsecured debt of PJSC Rostelecom (hereinafter – the Company, or Rostelecom). Due to the absence of either structural or contractual subordination of the bond, ACRA ranks the bond pari passu with other existing and future unsecured and unsubordinated debt obligations of the Company. According to the ACRA methodology, the credit rating of the bond is equivalent to that of PJSC Rostelecom, i.e. AA(RU).
The credit rating of PJSC Rostelecom is based on very strong business profile of the Company, its very large scope and leading market positions, as well as very high liquidity level and moderate support from the state. At the same time, medium leverage, the fact that some of the Rostelecom’s infrastructure sections belong to different generations of telecommunications technology, and Company’s substantial presence in segments with declining revenues limit the level of Company’s rating assessment.
Key issue properties
| Borrower | PJSC Rostelecom |
| Issuer credit rating | AA(RU), outlook Stable |
| Actual issuer | PJSC Rostelecom |
| Type of security | Exchange-traded interest-bearing certified unregistered bond, 4B02-03-00124-A-001P series |
| Issue volume | RUB 10 bln |
| ISIN | RU000А0ZYG52 |
| Final placement date | November 21, 2017 |
| Maturity date | November 9, 2027 |
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.
The credit rating has been assigned to the 4B02-03-00124-A-001P series bond issued by PJSC Rostelecom for the first time. The credit rating is expected to be revised within one year following the rating action date (November 21, 2017).
The credit rating is based on the data provided by PJSC Rostelecom, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and PJSC Rostelecom participated in its assignment.
No material discrepancies between the data provided and the data officially disclosed by PJSC Rostelecom in its financial statements have been discovered.
ACRA provided an additional service to PJSC Rostelecom in the form of informational support (a practical seminar). No conflicts of interest were discovered in the course of credit rating assignment.
