ACRA ASSIGNS AA(RU) TO SERIES BO-004P-08 (RU000A10F6F4) BOND ISSUE OF THE STATE COMPANY “AVTODOR”

Credit rating rationale. The issue represents senior unsecured debt of The State Company “Avtodor” (hereinafter, Avtodor 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 approach was applied to determine the credit rating, according to which the recovery rate of the issue is category II, and therefore the credit rating of the issue is equivalent to that of Avtodor, i.e. AA(RU).

The credit rating of the Company is on par with that of the Russian Federation, minus two notches, and is based on the very strong state influence. The state exercises absolute operational and financial control over Avtodor. The Company’s activities in the field of asset management and organization of construction and reconstruction of highways are financed by the federal budget and other sources. The two-notch reduction is based on the low assessments of sub-factors such as Social Role and Role in the Economy and Reputational Risks.

KEY ISSUE PROPERTIES

Sources: ACRA, issuer’s data

regulatory disclosure

The credit rating has been assigned the bond issue of The State Company “Avtodor” 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 bond issue (ISIN RU000A10F6F4) assigned under the national scale for the Russian Federation has been published for the first time.

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

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

The credit rating is solicited and The State Company “Avtodor” 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 The State Company “Avtodor” during the year preceding the rating action.

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