ACRA assigns eA+(RU) to Eurobonds issued by PJSC Sovcombank (LPN, actual issuer: SovCom Capital D.A.C.)

Expected credit rating rationale. SovCom Capital D.A.C., an Irish SPV, plans to place an LPN issue in January 2021 and provide proceeds from the issue in full as a loan to PJSC Sovcombank (hereinafter, the Bank). The issue represents senior unsecured debt of the Bank. Due to the absence of either structural or contractual subordination of the issue, ACRA regards it as pari passu with other existing and future unsecured and unsubordinated debt obligations of the Bank. According to ACRA’s methodology, the credit rating of the issue is equivalent to that of the Bank, i.e. A+(RU).

The credit rating is based on the Bank’s adequate business profile, risk profile, and liquidity and funding, as well as its strong capital position. The credit rating is supported by the Bank’s systemic importance for the Russian banking system.

Key issue properties

Borrower

PJSC Sovcombank

Borrower’s credit rating

A+(RU), outlook Positive

Actual issuer

SovCom Capital D.A.C.

Type of security

Eurobonds (LPN)

Type of debt

Senior unsecured

Expected placement

January 2021

Expected maturity

3–5 years

Expected issue volume

USD 300–500 mln

Specific terms

Cross-default in case of default by «Sovcombank Leasing», LLC and «Sovcombank insurance» (JSC)

Regulatory disclosure

ACRA will assign a credit rating to this issue of Eurobonds (LPN, actual issuer: SovCom Capital D.A.C.) after receiving the final documentation. In case of any significant discrepancies between the final documentation and the preliminary materials, ACRA may change the issue credit rating against the expected credit rating.

The expected credit rating has been assigned to the issue of Eurobonds (LPN, actual issuer: SovCom Capital D.A.C.) 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.

An expected credit rating has been assigned to this issue of Eurobonds (actual issuer: SovCom Capital D.A.C.) issued by PJSC Sovcombank for the first time. ACRA expects to assign the final credit rating within 90 days following the publication date of this press release.

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

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

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

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