Credit rating rationale. The issue represents senior unsecured debt of Home Credit and Finance Bank, LLC (hereinafter, the Bank). 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 Bank in terms of priority. According to ACRA’s methodology, the credit rating of the issue is equivalent to that of the Bank, i.e. A(RU).
The credit rating of the Bank is based on the Bank’s moderate business profile, strong capital adequacy position, adequate risk profile, and adequate liquidity and funding position. The volatility of asset quality and profit indicators due to the Bank’s business model, as well as the significant concentration of funding on consumer funds, limit the Bank’s standalone creditworthiness assessment. The rating is supported by the high probability of shareholder support.
Key issue properties
| Issuer | Home Credit and Finance Bank, LLC |
| Issuer’s credit rating | А(RU), outlook Stable |
| Actual issuer | Home Credit and Finance Bank, LLC |
| Type of security | Uncertificated exchange-traded interest-bearing non-convertible bond |
| Type of debt | Senior unsecured |
| ISIN | RU000A103760 |
| Issue volume | RUB 4 bln |
| Placement date | June 7, 2021 |
| Maturity date | June 1, 2026 |
Regulatory disclosure
The credit rating has been assigned under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments on 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 BO-04 series (RU000A103760) bond issued by Home Credit and Finance Bank, LLC 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 Home Credit and Finance Bank, LLC, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and Home Credit and Finance Bank, LLC participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which was, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to Home Credit and Finance Bank, LLC. No conflicts of interest were discovered in the course of credit rating assignment.
