ACRA ASSIGNS AA+(RU) TO THE SERIES 001P-16R (RU000A10BG13) BOND ISSUE OF PJSC ROSTELECOM

Credit rating rationale. The issue represents senior unsecured debt of PJSC Rostelecom (hereinafter, the Company, or Rostelecom). 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. As per ACRA’s methodology, taking into account the Company’s high creditworthiness and the absence of secured debt, the Agency has applied the simplified approach, according to which the credit rating of the issue is equivalent to that of Rostelecom, i.e. AA+(RU). The purpose of this bond issue is to refinance the current debt.

Rostelecom is the largest provider of digital services and solutions in all market segments in Russia. The Company provides mobile communication services, broadband Internet access, and pay TV services; it is a provider of innovative solutions in e-government services, cybersecurity, regional digitalization, healthcare, biometrics, education, housing and utility services, cloud computing, data center services, etc. Rostelecom is also engaged in import substitution, including software development and telecommunications equipment manufacture.

KEY ISSUE PROPERTIES

Sources: ACRA, issuer’s data

regulatory disclosure

The credit rating has been assigned to the series 001P-16R (RU000A10BG13) bond issue of PJSC Rostelecom under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to 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 the series 001P-16R (RU000A10BG13) bond issue of PJSC Rostelecom 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 PJSC Rostelecom, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited and PJSC Rostelecom 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 PJSC Rostelecom. No conflicts of interest were discovered in the course of credit rating assignment.