ACRA ASSIGNS AAA(RU) TO THE SERIES BО-002P-11 (RU000A10EYX2) BOND ISSUE OF PJSC “MEGAFON”

Credit rating rationale. The issue represents senior unsecured debt of PJSC “MegaFon” (hereinafter, MegaFon or 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. As per ACRA’s methodology, the simplified rating approach was applied, according to which the recovery rate for the issue belongs to category II, and therefore the credit rating of the issue is equal to the credit rating of MegaFon — AAA(RU).

MegaFon is one of the largest telecommunications companies in Russia, providing mobile and fixed communication services, mobile and broadband internet access, digital television, as well as solutions in the field of analytics and big data processing, cybersecurity and other areas.

KEY ISSUE PROPERTIES

Sources: ACRA, issuer’s data

REGULATORY DISCLOSURE

The credit rating has been assigned to the issue of PJSC “MegaFon” based on the following methodologies: the 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.

A credit rating of the issue (ISIN RU000A10EYX2) assigned under the national scale for the Russian Federation has been published for the first time. Previously, an eAAA(RU) expected credit rating was assigned to the issue (ISIN RU000A10EYX2).

The credit rating is expected to be revised within one year.

The credit rating was assigned based on data provided by PJSC “MegaFon”, information from publicly available sources, and ACRA’s own databases.

The credit rating is solicited and PJSC “MegaFon” participated in the rating process.

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 PJSC “MegaFon” during the year preceding the rating action.

No conflicts of interest were discovered in the course of the rating process.