ACRA ASSIGNS AA-(RU) TO AGRONEXT LLC, OUTLOOK STABLE, AND AA-(RU) TO THE BOND ISSUE (RU000A10EN86) OF RUSBOND-UDOBRENIA LLC

The credit rating of AgroNext LLC (hereinafter, AgroNext, the Company, or the Group) is based on the very strong assessment of the operational profile, very large business size, very high profitability, medium leverage, and strong liquidity. The low level of debt coverage and the weak cash flow assessment have a constraining effect on the credit rating.

AgroNext is a large Russian company producing a wide range of base and premium mineral fertilizers, as well as organic synthesis products for industrial purposes.

KEY ASSESSMENT FACTORS

The very strong assessment of the operational profile reflects the Company’s very strong market position, very low production costs, flexible production model with high product line diversification, very high geography assessment, and strong corporate governance. The Company’s product line is the most diversified in comparison with Russian fertilizer producers. The share of exports in the Group’s revenue significantly exceeds 50%.

Medium leverage and low coverage. ACRA estimates the weighted average ratio of total debt to FFO before net interest for 2026–2028 at 2.9x, and the weighted average ratio of FFO before net interest to interest for the same period at 2.5x.

Strong liquidity and weak cash flow. The strong liquidity assessment is based on the comfortable debt repayment schedule, loan portfolio diversified by sources and currencies, as well as the availability of financing. The weak score for cash flow reflects the Company passing the peak of investment costs in 2026–2027. The Agency estimates the weighted average FCF margin for 2026–2028 at -2.8% and expects the indicator to move into the area of positive values in 2027.

KEY ASSUMPTIONS

• Implementation of the production program in line with the Company’s plans.

• Capex in line with the Company’s plans.

• USD/RUB exchange rate reaching 100 by the end of 2028.

• Gradual decrease of the CBR’s key rate in the forecast period to 8% by the end of 2028.

• No dividend payments in the forecast period.

POTENTIAL OUTLOOK OR RATING CHANGE FACTORS

The Stable outlook assumes that the credit rating will highly likely stay unchanged within the 12 to 18-month horizon.

A positive rating action may be prompted by:

• Weighted average ratio of FFO before net interest to interest exceeding 2.5x.

A negative rating action may be prompted by:

• Weighted average ratio of total debt to FFO before net interest exceeding 3.5x;

• Major negative changes in the taxation of the industry.

RATING COMPONENTS

Standalone creditworthiness assessment (SCA): aa-.

ISSUE RATINGS

Credit rating rationale. AgroNext acts as the offeror for the series 001P-SPVB-01 (RU000A10EN86) bond issue of Rusbond-Udobrenia LLC. The Agency considers this issue to be AgroNext’s senior unsecured debt. Due to the absence of either structural or contractual subordination of the issue, ACRA views this bond as equal in priority to other existing and future unsecured and unsubordinated obligations of the Company. Since the Company’s coverage is assessed as low, the detailed rating approach is applicable per ACRA’s methodology, according to which the issue’s recovery rate belongs to category I, and therefore the issue’s credit rating is equivalent to the Company’s credit rating — AA-(RU).

key issue properties

Sources: ACRA, issuer’s data

REGULATORY DISCLOSURE

The credit ratings have been assigned to AgroNext LLC and the bond issue of Rusbond-Udobrenia LLC 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 AgroNext LLC under the national scale for the Russian Federation; the Methodology for Assigning Credit Ratings to Financial Instruments on the National Scale for the Russian Federation to determine the credit rating of the bond issue under the national scale for the Russian Federation; 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 assigned to AgroNext LLC under the national scale for the Russian Federation has been published for the first time. The credit rating assigned to the bond issue (RU000A10EN86) of Rusbond-Udobrenia LLC under the national scale for the Russian Federation has been published for the first time.

The credit rating of AgroNext LLC and its outlook and the credit rating of the bond issue of Rusbond-Udobrenia LLC are expected to be revised within one year.

The credit ratings were assigned based on data provided by AgroNext LLC, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS financial statements of AgroNext LLC as of December 31, 2025.

The credit ratings are solicited and AgroNext LLC participated in their 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 AgroNext LLC during the year preceding the rating action.

No conflicts of interest were discovered in the course of credit rating assignment.