RAEX (Expert RA) credit rating agency assigned PJSC Tatneft a nonfinancial company creditworthiness rating of ruAAA. The outlook for the rating is stable.
This is the first time that Tatneft obtains a credit rating from RAEX (Expert RA), which is an accredited credit rating agency pursuant to the Federal Law No. 222-FZ of 13 July 2015 “On the activities of credit rating agencies in the Russian Federation.” The credit rating has been assigned using the national scale and is long term.
Upon assigning the ruAAA credit rating the rating agency noted substantial estimated operational cash flow on the 18-month horizon (the estimated cash flow from operations before net interest expense is estimated at 247 billion Rubles), 30% EBITDA margin, debt-to-EBITDA ratio of 0.05 as of 31 March 2017 for the period between 31 March 2016 to 31 March 2017, which is the lowest amongst peer companies. At the opinion of RAEX (Expert RA), extremely low leverage combined with the lack of obstacles to access the capital markets have a positive effect on the rating level. For the purposes of its analysis the rating agency deconsolidated the effect of banking sector on the company. However, further increase of participation in the capital of PJSC Bank ZENIT and PJSC AK BARS BANK may trigger a change in approach to the company analysis.
The assignment of ruAAA credit rating using the national scale is the recognition of high credit quality of PJSC Tatneft. The company is implementing the Tatneft Group Development Strategy until 2025 aimed at doubling the value of the company compared to 2015 base year level by building a more balanced assets portfolio providing growth in profits, increased efficiency of operational, investment and financing activities with the simultaneous development of human capital, innovations and implementing responsible social and environmental policy.
Forward-looking statements: These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. PJSC Tatneft assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.