ACRA AFFIRMS AA-(RU) TO LLC “PIK CORPORATION”, OUTLOOK STABLE

The credit rating of LLC “PIK Corporation” (hereinafter, the Company) has been affirmed based on it maintaining the credit metrics within the ranges established for the current rating level.

The Company’s credit rating is based on the strong market position and very strong business assessment, which reflects the very high diversification of the project portfolio of PJSC “PIK SHb” (ACRA rating: AA-(RU), outlook Stable; hereinafter, PIK or the Group), stable structure of project delivery terms and conditions, as well as the availability of production capacity and the implementation of some construction work without the use of contractors. The rating is supported by a very high assessment of geographic sales diversification, strong corporate governance, and a very high financial profile. The Company’s credit rating is constrained by very high industry risk (residential construction).

LLC “PIK Corporation” is a wholly owned subsidiary of the Group. The Company accounts for around 100% of revenues and 106% of the assets of the Group (according to the 2025 IFRS financial statements of the Company and the Group) and therefore ACRA used the Group’s reporting when calculating the quantitative metrics of the Company. PIK is the largest residential real estate developer in the Moscow area. The Company builds and sells residential real estate mainly in the affordable housing segment, as well as carrying out a number of business class and premium projects. The Company’s current construction portfolio, according to the Unified Resource of Developers, amounted to 3.7 mln sq. m as of August 2026. The Group’s land bank amounts to over 20 mln sq. m. of sellable area, including projects under the renovation program.

KEY ASSESSMENT FACTORS

Very high industry risk. According to the Agency’s methodology, the very high risk of the residential construction industry is a serious constraining factor for the Company’s credit rating.

The very high assessment of the operational profile is based on the very strong business assessment, strong assessments of the market position and corporate governance, as well as the very high assessment of geographic diversification. PIK continues to lead the moderately concentrated primary housing market of the Moscow area with a share of around 12% of the market by volume of current construction. According to the Unified Resource of Developers, since 2016 PIK has been the leader in accumulated housing commissioning in Moscow — 9.8 mln sq. m, which is more than 1.5x higher than the figure of its closest competitor. In addition, the Group has acted as a general contractor in the execution of Moscow’s renovation program, consistently ensuring about a third of the total design and construction volume under this program. The Group’s project portfolio is diversified across 14 of Russia’s regions. According to the Agency’s estimates, Moscow will account for the main share of sales over the next three years. At the same time, concentration on certain regions will not exceed 70% of target revenues for the specified period, which supports the very high assessment of geographic diversification.

The very strong score for business is due to the wide diversification of the Group’s project portfolio (93 projects), stable structure of deadlines and conditions for the implementation of projects, as well as the availability of in-house production capacities, the implementation of part of construction work without the involvement of contractors, and making a significant share of sales via its own platform. PIK independently carries out the functions of a general contractor and technical customer; its own design institute carries out a significant part of the project work. When assessing the business, ACRA also takes into account the Group’s extensive experience in integrated development and the significant size of the land bank in its ownership.

The high assessment of corporate governance takes into account the Group’s successful strategy, which ensures its market leadership, and development of a production base and product line under the Forma, Mono, and Sreda brands. The Agency assesses the management structure highly: the board of directors has four independent members out of five, key committees, and a comprehensive risk management system. The Group compiles IFRS financial statements twice a year and published them in the public domain.

Very large size of the Group and high profitability. The weighted average ratio of FFO before net interest payments and taxes to GDP in 2023–2028 was 5.065 bps (RUB 111.6 bln), while the volume of the portfolio of projects currently under construction reached 3.95 mln sq. m (as of June 1, 2026), which, according to the Agency’s methodology, corresponds to a very large size of business. The Group’s high profitability is driven by its accumulated experience in implementing large-scale integrated territorial development projects and a high level of digitalization of business processes. The Agency estimates the weighted average FFO margin before net interest payments and taxes from 2023 to 2028 at 16%.

Very low leverage and very high interest payment coverage. When calculating the ratio of net debt to FFO before net interest payments, ACRA adjusts the total debt by the amount of debt raised under project finance under escrow accounts and fully secured by funds received in escrow accounts from buyers. In 2025, the Group’s net debt was negative due to the significant volume of accumulated funds, while interest income exceeded interest expenditures, which indicates a very high level of debt service. In the Agency’s opinion, PIK retains the ability to maintain its leverage at the current level in 2026–2028.

The very strong liquidity position stems from the stable operating cash flow, presence of cash in the Group’s accounts and deposits, as well as access to debt and equity capital markets. ACRA notes that the redemption of bond issues scheduled for the end of 2026 does not put significant pressure on the Group’s liquidity, given the existing cash reserves.

KEY ASSUMPTIONS

• Fulfillment of planned construction and sales deadlines;

• ACRA’s calculations only take into account property under construction and planned as per the Group’s current financial plan;

• No significant decline in prices in the Moscow area’s primary real estate market in 2026–2028.

POTENTIAL OUTLOOK OR RATING CHANGE FACTORS

The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.

A positive rating action may be prompted by:

• Weighted average FFO margin before net interest payments and taxes exceeding 20% coupled with the weighted average ratio of adjusted total debt to capital falling below 0.5x.

A negative rating action may be prompted by:

• Weighted average ratio of FFO before net interest payments to net interest payments falling below 7.0x coupled with the weighted average free cash flow (FCF) margin falling below 10%;

• Weighted average FFO before net interest payments and taxes falling below RUB 5 bps of GDP coupled with the weighted average FFO margin before net interest payments and taxes falling below 15% and the weighted average ratio of adjusted net debt to FFO before net interest payments exceeding 1.0x.

RATING COMPONENTS

Standalone creditworthiness assessment (SCA): аа-.

REGULATORY DISCLOSURE