ACRA ASSIGNS AAA(RU) TO THE SERIES 002P-10 (RU000A10BGY3) BOND ISSUE OF MTS PJSC

Credit rating rationale. The issue is a senior unsecured debt instrument of MTS PJSC (hereinafter, MTS or the Company). Due to the absence of 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, the simplified approach was used, according to which the credit rating of the issue is the same as the credit rating of the Company — AAA(RU).

The credit rating of MTS is based on the very high assessment of the operational risk profile. ACRA notes the very strong business profile of the Company, very broad geography of its operations, as well as the very high quality of the corporate governance system. The assessment of the financial risk profile is high. The Company has very high assessments for size of business, profitability, and liquidity. The Agency assumes that the Company’s leverage is not high. Medium debt service and a moderately low assessment of cash flow put pressure on the credit rating.

MTS is the largest Russian mobile communications operator by number of subscribers, is also present in the fixed communications and financial services segments, and provides various digital services. As of December 31, 2024, the Russian segment of the mobile communications subscriber base included 82 mln clients, while broadband internet access had 5 mln clients.

KEY ISSUE PROPERTIES

Sources: ACRA, issuer’s data

REGULATORY DISCLOSURE

The credit rating has been assigned to the series 002P-10 (RU000A10BGY3) bond issue of MTS PJSC 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-10 (RU000A10BGY3) bond issue of MTS PJSC 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 MTS PJSC, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited and MTS PJSC 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 MTS PJSC. No conflicts of interest were discovered in the course of credit rating assignment.