Credit rating rationale. Bond issue is a senior unsecured debt obligation of Joint Stock Company «Federal Passenger Company» (hereinafter, FPC, or the Company). Due to the absence of either structural or contractual subordination of the issue, ACRA ranks the bond pari passu with other existing and future unsecured and unsubordinated debt obligations of the Company. In accordance with the ACRA methodology, and taking into account high creditworthiness and the medium leverage of the issuer, as well as the absence of secured debt obligations, the Agency applies a simplified approach, according to which the bond issue is rated AA+(RU), on par with the credit rating assigned to FPC.
The credit rating assigned to FPC is one rating notch below the financial obligations of the Russian Government, in view of a high systemic importance of the Company for the Russian economy and a very high influence of the state on the Company. ACRA notes that the level of systemic importance is not maximum achievable, which is due to a limited vulnerability of the national economy to a potential default of the Company.
Key issue properties
| Borrower | Joint Stock Company «Federal Passenger Company» |
| Issuer’s credit rating | AA+(RU), outlook Stable |
| Actual issuer | Joint Stock Company «Federal Passenger Company» |
| Type of security | Exchange-traded interest-bearing |
| Issue volume | RUB 5 bln |
| RegS | 4B02-04-55465-E-001P |
| ISIN | RU000A0ZZRK1 |
| Final placement date | October 31, 2018 |
| Maturity date | October 18, 2028 |
Regulatory disclosure
The credit rating has been assigned under the national scale for the Russian Federation and is based on the Methodology for Assigning Credit Ratings to Individual Issues of 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.
The credit rating has been assigned to RU000A0ZZRK1 bond issued by Joint Stock Company «Federal Passenger Company» for the first time. The credit rating is expected to be revised within one year following the rating action date (October 29, 2018).
The credit rating was assigned based on the data provided by Joint Stock Company «Federal Passenger Company», information from publicly available sources, as well as ACRA’s own databases. The credit rating is solicited, and Joint Stock Company «Federal Passenger Company» participated in its assignment.
No material discrepancies between the provided data and the data officially disclosed by Joint Stock Company «Federal Passenger Company» in its financial statements were discovered.
ACRA provided no additional services to Joint Stock Company «Federal Passenger Company». No conflicts of interest were discovered in the course of credit rating assignment.
