The credit rating of Rosseti Lenenergo PJSC (hereinafter, Rosseti Lenenergo or the Company) is determined by its standalone creditworthiness assessment (SCA) at aa+, as well as the high likelihood of “ROSSETI”, PJSC (ACRA rating: AAA(RU), outlook Stable; hereinafter, Rosseti or the Holding) providing extraordinary support if necessary.
The Company’s SCA reflects its very strong market position in the regions of presence, strong operating profile, high business profitability, as well as the very low leverage, very high debt service, and the strong liquidity position.
Rosseti Lenenergo is a regional electric grid company operating in Saint Petersburg and the Leningrad Region.
Key assessment factors
High likelihood of extraordinary support from Rosseti. Rosseti Lenenergo is a natural monopoly that transmits electric power in Saint Petersburg, Russia’s second largest economic center. It is a key region for the Holding that performs quasi-public energy supply functions. As part of Rosseti, the Company is integrated into the single treasury system and the mechanism for providing operating liquidity to subsidiaries.
Infrastructure monopoly with moderate sales risk. The Company occupies a dominant position in the electricity transmission market within the boundaries of interconnected networks in Saint Petersburg and the Leningrad Region (market shares of 97% and 80%, respectively). In September 2024, the Company was assigned the status of a systemically important regional grid organization in Saint Petersburg and the Leningrad Region. The share of overdue receivables is low at 1.0% of revenues for 2025.
Strong operating profile. In 2011–2020, tariff-regulating authorities applied a special tariff leveling procedure to the Company, whereby the gross revenue requirement was redistributed by years. Funds subtracted from the gross revenue requirement were returned to the Company in subsequent years of the long-term regulatory period. The regulatory risk facing the Company is has declined because the tariff leveling procedure was not applied in 2021–2025 and is not expected to be applied in the current tariff period, and the accumulated regulatory debt is taken into account in the current tariff decisions.
Increased tariff indexation for the Company is mostly associated with its high investment commitments, as Rosseti Lenenergo has one of the highest ratios of investments to revenues (40% in 2025).
ACRA assesses the Company’s corporate governance as adequate and matching industry standards. The Company’s risk management system minimizes all the major types of risk, while the Holding’s control includes approval of the credit policy and the rules for the placement of funds, which are unified within the group, as well as compliance at the level of the Company’s management bodies. ACRA notes that Rosseti’s control over the Company’s operations is very tight, while the Company’s financial transparency is high.
Positive free cash flow (FCF). In 2025, the Company’s FCF was positive and amounted to RUB 10.6 bln (RUB 16.2 bln in 2024). ACRA expects the Company’s FCF to remain positive in the forecast period from 2026 till 2028.
In 2025, the Company’s FFO margin before interest payments and taxes was 51% (vs. 56% in 2023). ACRA expects the margin to remain around this level in the forecast period.
Very low leverage and very high coverage. As of April 1, 2026, the Company’s entire debt portfolio was made up of a long-term bond issue worth RUB 10.0 bln. As of December 31, 2025, the ratio of total debt, including pension obligations, to FFO before net interest payments was 0.47x (the same as a year earlier). ACRA expects leverage to continue gradually declining over the forecast period.
The interest payment coverage ratio (ratio of FFO before net interest payments to interest payments) was 21.7x at the end of 2025 (21.5x in 2024). The Agency believes this ratio will remain very high going forward.
The strong liquidity position is due to a significant amount of funds held in the Company’s accounts and deposits (exceeding RUB 49 bln as of December 31, 2025), as well as a significant amount of available credit lines, which exceeds the Company’s total debt by several times.
Key assumptions
-
Corporate capital investment program implemented in full and on time;
-
Dividend payments as per the Company’s forecast model.
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 negative rating action may be prompted by:
-
Rosseti’s loss of control or looser integration between the Company and the Holding;
-
Total debt exceeding 2.0x of FFO before net interest payments amid deteriorating debt structure or interest payment coverage falling below 8.0x;
-
FFO margin before net interest payments and taxes falling below 25% along with interest coverage declining below 5.0x;
-
Much worse access to external liquidity sources.
Rating components
SCA: aa+.
Support: group.
Issue ratings
Rosseti Lenenergo PJSC bonds (RU000A107EC7), maturity date: November 27, 2027, issue volume: RUB 10 bln — AAA(RU).
Credit rating rationale. The issue represents senior unsecured debt of 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. As per ACRA’s methodology, the simplified approach was applied to determine the credit rating, according to which the level of recovery for the issue corresponds to category II, and therefore the credit rating of the issue is on par with the credit rating of the Company — AAA(RU).
Regulatory disclosure
The credit ratings have been assigned to Rosseti Lenenergo PJSC and the issue of Rosseti Lenenergo PJSC based on the following methodologies: the Methodology for Assigning Credit Ratings to Non-Financial Corporations under the National Scale for the Russian Federation to calculate the SCA and determine the credit rating and the credit rating outlook of Rosseti Lenenergo PJSC under the national scale for the Russian Federation, Methodology for Assigning Credit Ratings with External Support to determine factors of external influence, Methodology for Assigning Credit Ratings to Financial Instruments under the National Scale for the Russian Federation to determine the credit rating of the bond issue 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 to ensure consistent and uniform application of ACRA’s methodologies, rating scales, models, and key rating assumptions.
The credit rating of Rosseti Lenenergo PJSC assigned under the national scale for the Russian Federation was published by ACRA for the first time on April 11, 2018. The credit rating of the issue (ISIN RU000A107EC7) assigned under the national scale for the Russian Federation was published by ACRA for the first time on December 18, 2023.
The most recent publication date of the credit ratings of Rosseti Lenenergo PJSC and its bond issue (ISIN RU000A107EC7) is April 24, 2025.
The credit rating of Rosseti Lenenergo PJSC and its outlook, as well as the credit rating of the bond issue, are expected to be revised within one year.
The credit ratings were assigned based on data provided by Rosseti Lenenergo PJSC, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS accounting (financial) statements of Rosseti Lenenergo PJSC as of December 31, 2025.
The credit ratings are solicited and Rosseti Lenenergo PJSC participated in their assignment.
In assigning the credit ratings, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided the following additional services to Rosseti Lenenergo PJSC: assignment of an ESG rating to a company (sovereign/sub-sovereign) from May 31, 2023 to the present.
No conflicts of interest were discovered in the course of credit rating assignment.
