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ACRA assigns AA(RU) to series BO-003P-04 (RU000A100ZS3) bond issued by PJSC Magnit

Credit rating rationale. The bond issue represents senior unsecured debt of PJSC Magnit (hereinafter, the Company). Due to the absence of either structural or contractual subordination of the issue, ACRA ranks it pari passu with other existing and future unsecured and unsubordinated debt obligations of the Company. According to ACRA’s methodology, the bond issue is rated AA(RU), i.e. on par with PJSC Magnit.

The credit rating of the PJSC Magnit is based on its very strong operating profile, very large size, high profitability, and very strong liquidity. The rating is constrained by medium coverage and moderate cash flow.

PJSC Magnit is one of the two largest retail market players in Russia. As of year-end 2018, the Company’s chain included 13,427 convenience stores, 467 supermarkets, and 4,505 drugstore format stores. The retail chain had 6.4 million sq. m of total sales space as of late December 2018 and employed around 298,000 people. The Company is present in all federal districts of Russia excluding the Far Eastern Federal District.

Key issue properties

Issuer

PJSC Magnit

Issuer’s credit rating

АA(RU), outlook Stable

Actual issuer

PJSC Magnit

Type of security

Exchange-traded interest-bearing certified unregistered bond, series BO-003P-04

Issue volume

RUB 10 bln

ISIN / RegS

RU000A100ZS3 / 4B02-04-60525-P-003P

Placement start date

November 5, 2019

Maturity date

May 3, 2022

Regulatory disclosure

The credit rating has been assigned to series BO-003P-04 (RU000A100ZS3) bond issued by PJSC Magnit under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments under the National Scale of the Russian Federation, and the Key Concepts Used by the Analytical Credit Rating Agency Within the Scope of Its Rating Activities.

The credit rating has been assigned to series BO-003P-04 (RU000A100ZS3) bond issued by PJSC Magnit for the first time. The credit rating is expected to be revised within one year following the publication date of this press release.

The assigned credit rating is based on the data provided by PJSC Magnit, information from publicly available sources, as well as ACRA’s own databases. The credit rating is solicited, and PJSC Magnit participated in its assignment.

No material discrepancies between the provided data and the data officially disclosed by PJSC Magnit in its financial statements have been discovered.

ACRA provided no additional services to PJSC Magnit. No conflicts of interest were discovered in the course of credit rating assignment.

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