Press Releases / 30.12.2015

Press Release as of 30.12.2015


Main Road OJSC

AK&M Rating Agency has affirmed the rating assigned to credit rating of infrastructure bonded loan 4-06-12755-A issued by Main Road, OJSC at 'A++' on the national scale. The outlook is stable.

The 'A++' rating indicates that bonded loan 4-06-12755-A qualifies as a bonded loan with exceptionally high creditworthiness, with the lowest imaginable risk of a delay in meeting obligations.

Bonded loan 4-06-12755-A in the amount of RUB 8,173 million maturing in 5,824 days was used to finance the project of construction and subsequent operation of a new junction between the Moscow Automobile Ring Road and the federal highway M-1 'Belarus' Moscow – Minsk, a modern 18.5 km long high-speed toll highway. Main Road, OJSC is the principal investor in the project and the issuer of bonded loan 4-06-12755-A.

Main Road, OJSC is a special-purpose vehicle established under the Russian legislation to implement the project of construction and operation of the toll highway "New junction of the Moscow Automobile Ring Road (MKAD) and the M-1 'Belarus' Moscow – Minsk federal highway" (a connecting highway between the MKAD near the Molodogvardeyskaya street junction, and the M-1 federal highway). Main Road, OJSC is an SPV company established by a consortium of companies (ALPINE BAU, BRISA-Auto-estradas de Portugal, FCC, LEADER Management Company, Stroygazconsulting LLC, and Gazprombank OJSC. In pursuance of this public-private partnership project, a 30-year concession agreement was concluded specifying Main Road, OJSC as the concessionary and the Russian Federation (Russia's Federal Road Agency) as the concession provider (hereinafter referred to as the concession agreement). To a large extent, the highway construction project was financed with infrastructure bonds issued by Main Road, OJSC. One of such bond issues is the currently rated bonded loan 4-06-12755-A of Main Road, OJSC.

In December 2015, Main Road, OJSC, the issuer of bond issue 4-06-12755-A, was rated 'A+' on the national scale by AK&M Rating Agency, with a stable outlook. According to the guidelines of our Credit Rating Methodology for Project Financing Companies rev. February 16, 2015, including the amendments and additions dated October 12, 2015, certain reasons for rating bond issue 4-06-12755-A higher than its issuer were considered and estimated.

We regard direct state guarantee no. 04-04-10/194 as of October 20, 2011 signed by the Deputy Minister of Finance of the Russian Federation as a convincing reason for rating bond issue 4-06-12755-A higher than its issuer. The direct state guarantee renders bond issue 4-06-12755-A as a financial instrument securing debt obligations with a higher degree creditworthiness compared with its issuer.

In view of the above, AK&M Rating Agency rated bond issue 4-06-12755-A of Main Road, OJSC  'A++', with a stable outlook.

To date, Main Road, OJSC has placed three bond issues. Bonded loan 4-03-12755-A (the total nominal amount being RUB 8 billion) was placed 11/22/2010, final maturity date being 10/30/2028; bonded loan 4-06-12755-A (the nominal amount being RUB 8.17 billion) was placed 12/28/2012 and shall mature on 12/8/2028; bonded loan 4-07-12755-A was placed 11/20/2012, its nominal amount is RUB 1.4 billion, maturity date is 10/30/2029.

In 2014, AK&M Rating Agency assigned 'A+' credit ratings to bonded loans 4-03-12755-A and 4-07-12755-A, with stable outlooks.

Issuer's full name: "Main Road", Open Joint-Stock Company

AK&M Rating Agency assigned a credit rating to bonded loan 4-06-12755-A issued by Main Road, OJSC for the first time on September 14, 2012. The last rating action in respect of the bonded loan was taken on December 30, 2014. All rating action announcements are available on the akmrating.ru website.

The rating is valid until January 2017. AK&M Rating Agency may revise the rating and/or the outlook during this period if circumstances fundamentally influencing the Company's creditworthiness are revealed.

For estimation purposes, we completely rely on the reliability of information provided by the Company. The rationale for AK&M Rating Agency's judgment on the rating may include information acquired from other sources we deem to be reliable; however, the agency does not check the input data exhaustively and disclaims all responsibility for their possible errors.

This press release is based on the Statement of assignment of a credit rating to bonded loan 4-06-12755-A issued by Main Road, OJSC. The rating assignment was based on the Credit Rating Methodology for Project Financing Companies rev. February 16, 2015, including the amendments and additions dated October 12, 2015.

The rating, along with any information and conclusions provided in this press release, only conveys our creditworthiness opinion and shall not be construed as a recommendation to purchase or sell securities, or to lend funds.

AK&M Rating Agency shall not be held liable for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993. CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.

 

AK&M Rating Agency

Ul. Gubkina 3, Moscow, Russia

www.akmrating.ru

Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.

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