On establishing long-term credit ratings of certain assets eligible for the calculation of capital of management companies of investment funds, unit investment funds and non-governmental funds and applicants for management company licences

The Bank of Russia Board of Directors established the following long-term credit ratings:

For the purpose of paragraphs two and three of Clause 2 of Bank of Russia Ordinance No. 4075-U, dated 19 July 2016, ‘On the Capital Requirements for Management Companies of Investment Funds, Unit Investment Funds, Non-governmental Pension Funds, and Applicants for Management Company Licence’, registered with the Ministry of Justice of the Russian Federation on 15 August 2016, No. 43234 (hereinafter referred to as the Ordinance), the long-term credit rating of credit institutions in the classification of at least one of the rating agencies Fitch Ratings, S&P Global Ratings and Moody’s Investors Service (hereinafter referred to as the foreign rating agencies) shall be no lower than the sovereign rating of the Russian Federation in the corresponding currency assigned by the respective rating agency decreased by two notches, or the national credit rating shall be no lower than А-(RU) in the classification of the Analytical Credit Rating Agency (ACRA);

For the purpose of paragraph four of Clause 2 of the Ordinance, the long-term credit rating of the issue (the issuer or the warrantor (guarantor), if the issue is not rated) of bonds in the classification of at least one of the foreign rating agencies shall be no lower than the sovereign rating of the Russian Federation in the corresponding currency assigned by the respective foreign rating agency decreased by three notches, or the national credit rating shall be no lower than А++ in the classification of Expert RA, or the Russian national credit rating shall be no lower than BBB+(RU) in the classification of the Analytical Credit Rating Agency (ACRA);

For the purpose of paragraph seven of Clause 2 of the Ordinance, the long-term credit rating of a debtor in the classification of at least one of the foreign rating agencies shall be no lower than the sovereign rating of the Russian Federation in the corresponding currency assigned by the respective foreign rating agency decreased by two notches, or the Russian national credit rating shall be no lower than A-(RU) in the classification of the Analytical Credit Rating Agency (ACRA).

This decision takes into account the following credit ratings by foreign rating agencies:

Credit ratings by Fitch Ratings — issuer default rating, corporate finance obligations, and long-term rating of structured finance, project finance and public finance obligations;

Credit ratings by S&P Global Ratings — issuer credit rating and long-term issue credit rating;

Credit ratings by Moody’s Investors Service — issuer rating, corporate family rating, structured finance issuer rating, long-term corporate obligation rating, structured finance long-term rating and bank deposit rating. The corporate family rating shall be applied to the issuer only in case this credit rating is assigned directly to the issuer.

For the purpose of this decision a rating notch means its gradation expressed through figures and symbols (‘+’, ‘-’, 1, 2, 3).

This decision is to become effective since it is published in the Internet.

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