Training on sovereign risk credit analysis, October 24

ACRA assigns eА-(RU) to 001Р-02 bond issued by Setl Group, Ltd

Expected credit rating rationale. The 001P-02 series issue represents senior unsecured debt of Setl Group, Ltd (hereinafter, 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. According to the ACRA methodology, the reimbursement rate for unsecured debt relates to category II; hence, the expected credit rating of the bond issue is equivalent to that of the Company, i.e. A-(RU).

The credit rating of the Company is based on its very strong business profile, medium level of corporate governance, high business profitability, very low leverage, and strong liquidity. At the same time, very high industry risk puts pressure on the credit rating.

Key issue properties


Setl Group, Ltd

Issuer’s credit rating

А-(RU), outlook Stable

Actual issuer

Setl Group, Ltd

Type of security

Exchange-traded interest-bearing non-convertible certified bearer bonds subject to mandatory centralized custody, 001Р-02 series

Issue volume

No less than RUB 3 bln

Bookbuilding deadline

July 15, 2019


3.5 years

Regulatory disclosure

ACRA will assign a credit rating to 001Р-02 bond issued by Setl Group, Ltd 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 001Р-02 bond issued by Setl Group, Ltd 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 Analytical Credit Rating Agency within the Scope of Its Rating Activities.

Loss recovery sources were assessed with a deviation from the methodology.

The expected credit rating has been assigned to 001Р-02 bond issued by Setl Group, Ltd 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 Setl Group, Ltd, information from publicly available sources, and ACRA’s own databases. The expected credit rating is solicited, and Setl Group, Ltd participated in its assignment.

No material discrepancies between the provided data and data officially disclosed by Setl Group, Ltd in its financial statements have been discovered.

ACRA provided no additional services to Setl Group, Ltd. No conflicts of interest were discovered in the course of expected credit rating assignment.

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