Training on сorporate credit analysis, March 19–20

ACRA assigns AA(RU) to XS1946883342 (9 series LPN, actual issuer: Alfa Bond Issuance Plc) Eurobonds issued by JSC “ALFA-BANK”

Credit rating rationale. Alfa Bond Issuance Plc, an Irish SPV, has placed an LPN issue and provided proceeds from the issue in full as a loan to JSC “ALFA-BANK” (hereinafter, Alfa-Bank, or the Bank). The issue represents senior unsecured debt of Alfa-Bank. 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 Bank. According to the ACRA methodology, the credit rating of the issue is on par with that of Alfa-Bank — AA(RU).

The credit rating of Alfa-Bank is based on its strong business profile, adequate capital reserves, adequate liquidity and funding position, and satisfactory risk profile. The rating is further supported by the Bank’s moderate systemic importance for the Russian financial market.

Key issue properties

Issuer

Alfa Bond Issuance Plc

Issuer’s credit rating

AА(RU), outlook Stable

Actual issuer

Alfa Bond Issuance Plc

Type of security

Eurobonds (LPN)

Issue volume

RUB 10 bln

ISIN

XS1946883342

Final placement date

February 6, 2019

Maturity date

August 6, 2022

Regulatory disclosure

The credit rating has been assigned to XS1946883342 Eurobonds under the national scale for the Russian Federation and is 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 XS1946883342 Eurobonds issued by JSC “ALFA-BANK” (actual issuer: Alfa Bond Issuance Plc) for the first time. The credit rating is expected to be revised within one year following the rating action date (February 7, 2019).

The credit rating is based on data provided by JSC “ALFA-BANK”, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and JSC “ALFA-BANK” participated in its assignment.

No material discrepancies between the provided data and data officially disclosed by JSC “ALFA-BANK” in its financial statements have been discovered.

ACRA provided additional services to JSC “ALFA-BANK”. No conflicts of interest were discovered in the course of credit rating assignment.

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