ACRA ASSIGNS AA-(RU) TO THE SERIES 002P-01 (RU000A10B024) BOND ISSUE OF SISTEMA PJSFC

Credit rating rationale. The series 002P-01 bond issue represents senior unsecured debt of Sistema PJSFC (hereinafter, Sistema, or the Holding). 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 Holding in terms of priority. As per ACRA’s methodology, the simplified approach was used, according to which the credit rating of the issue is equal to the credit rating of the Holding — AA-(RU).

The credit rating of Sistema PJSFC is based on the continued high quality of the Holding’s financial investments coupled with their sustainable structure and high diversification. ACRA continues to very highly assess the Holding’s corporate governance, which is characterized by a conservative financial policy and a consistent, predictable investment policy.

The Agency continues to assess Sistema’s financial risk profile as above medium. In ACRA’s opinion, the Holding is characterized by low leverage and very strong liquidity. The rating is still constrained by the low coverage of interest payments.

Sistema is one of the Russia’s largest investment holdings. Its shareholdings are spread across a wide range of industries. 32.6% of the Holding’s shares are in free float.

KEY ISSUE PROPERTIES

Sources: ACRA, issuer’s data

regulatory disclosure

The credit rating of the series 002P-01 (RU000A10B024) bond issue of Sistema PJSFC has been assigned under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Financial Instruments under 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-01 (RU000A10B024) bond issue of Sistema PJSFC 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 Sistema PJSFC, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited and Sistema PJSFC 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 additional services to Sistema PJSFC. No conflicts of interest were discovered in the course of credit rating assignment.