ACRA ASSIGNS AA+(RU) TO THE SERIES 002P-01 (RU000A10C725) BOND ISSUE OF JSC “HC “METALLOINVEST”

Credit rating rationale. The issue represents senior unsecured debt of JSC “HC “METALLOINVEST” (hereinafter, the Company). 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 Company in terms of priority. According to ACRA’s methodology, taking into account the level of the issuer’s rating, the simplified approach was used to determine the level of the issue’s rating. The credit rating of the issue is equivalent to that of the Company and is set at AA+(RU).

The Company’s credit rating reflects its strong market position and very strong business profile assessment determined by the high-quality resource base, thanks to which the Company’s production cost is one of the lowest in the mining segment not only in Russia, but in the world as well. A strong assessment of geographic sales diversification, strong corporate governance, and a strong financial profile support the Company’s rating.

KEY ISSUE PROPERTIES

Sources: ACRA, issuer’s data

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 Financial Instruments 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.

A credit rating has been assigned to the series 002P-01 (RU000A10C725) bond issue of JSC “HC “METALLOINVEST” 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 JSC “HC “METALLOINVEST”, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited and JSC “HC “METALLOINVEST” 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 no additional services to JSC “HC “METALLOINVEST”. No conflicts of interest were discovered in the course of credit rating assignment.