Expected credit rating rationale. The issue represents senior unsecured debt of JSC SG-trans (hereinafter, the Company). In accordance with the methodology, ACRA applies a detailed approach, under which the recovery rate for the issue belongs to category II, therefore the expected credit rating of the issue is equivalent to that of the Company, i.e. A+(RU), and is set at eA+(RU).

The credit rating of the Company, including its subsidiaries (the Group), reflects the Group's strong market positions in the liquefied hydrocarbon gas (LHG) transportation segment, strong business profile supported by the focus on high-margin cargoes, and high utilization rate and medium wear and tear of rolling stock. Wide geographic diversification and vast client base are also positive for the business profile. Rating restricting factors include business size, and medium leverage and coverage assessments.

Key issue properties

Borrower

JSC SG-trans

Issuer’s credit rating

A+(RU), outlook Stable

Actual issuer

JSC SG-trans

Type of security

Exchange-traded interest-bearing uncertified non-convertible bond subject to centralized title registration, 001P-01 series

Issue volume

RUB 5.5 bln

Program reg. No.

4-50069-A-001Р-02Е

Offer date

October 2021

Time to maturity

5 years

Source: ACRA, issuer’s data

Regulatory disclosure

ACRA will assign a credit rating to the 001P-01 series bond of JSC SG-trans after receiving the final documentation. In case of any significant discrepancies between the final documentation and the preliminary materials, ACRA may change the issue’s credit rating against the expected credit rating.

The expected 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 for the Russian Federation and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities.

The expected credit rating has been assigned to the 001P-01 series bond of JSC SG-trans for the first time. The next rating action is expected within 180 days following the publication date of this press release.

The expected credit rating is based on data provided by JSC SG-trans, information from publicly available sources, and ACRA’s own databases. The expected credit rating is solicited, and JSC SG-trans participated in its assignment.

In assigning the expected 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 JSC SG-trans. No conflicts of interest were discovered in the course of the expected credit rating assignment.

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