ACRA ASSIGNS AAA(RU) TO THE SERIES 003P-06 (RU000A109KC0) BOND ISSUE OF X5 FINANCE LLC

Credit rating rationale. PJSC X5 Corporate Center (ACRA rating: AAA(RU), outlook Stable; hereinafter, X5 or the Company) acts as the guarantor for the series 003P-06 bond issue of X5 Finance LLC, and due to this the Agency views the issue as senior unsecured debt of the Company. Due to the absence of 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. In accordance with ACRA’s methodology, the detailed approach was used to determine the credit rating, according to which the recovery rate for losses on the issue corresponds to Category I, and therefore the credit rating of the issue is AAA(RU), i.e. on par with the credit rating of the Company.

X5 is a leading Russian grocery retailer. The credit rating of the Company is based on its very strong operational risk profile and liquidity, leading position in the Russian food retail market, low leverage, and high profitability.

KEY ISSUE PROPERTIES

Sources: ACRA, issuer’s data

REGULATORY DISCLOSURE

The credit rating has been assigned to the bond issue of X5 Finance LLC based on the following methodologies: the Methodology for Assigning Credit Ratings to Financial Instruments under the National Scale for the Russian Federation to determine the credit rating of the bond issue 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 to ensure consistent and uniform application of ACRA’s methodologies, models, and key rating assumptions.

A credit rating of the bond issue (ISIN RU000A109KC0) assigned under the national scale for the Russian Federation has been published for the first time.

The credit rating is expected to be revised within one year.

The credit rating was assigned based on data provided by PJSC X5 Corporate Center, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS accounting (financial) statements of PJSC X5 Corporate Center as of December 31, 2024.

The credit rating is solicited and PJSC X5 Corporate Center 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 the following additional services to PJSC X5 Corporate Center during the year preceding the rating action: service for assigning an ESG rating to a company (sovereign/sub-sovereign) from August 1, 2023 to the present.

No conflicts of interest were discovered in the course of credit rating assignment.