On establishing long-term credit ratings of certain assets eligible for the calculation of capital of non-governmental pension fund

The Bank of Russia Board of Directors took the following decision:

1. for the purpose of paragraph four of Clause 2 of Bank of Russia Ordinance No. 4028, dated 30 May 2016, ‘On the Procedure for Calculating the Capital of Non-governmental Pension Funds’ (hereinafter, the Ordinance), to establish the following credit rating for credit institutions’ bond issues acquired as part of the capital of a non-governmental pension fund after 13 July 2017: A-(RU) on the national rating scale for the Russian Federation in the classification of the rating agency ACRA (JSC) (hereinafter, ACRA);

to establish the following credit ratings for the issuer or surety (guarantor) of such bonds:

for Russian rated entities — ruA- on the national rating scale for the Russian Federation in the classification of the rating agency JSC Expert RA (hereinafter, JSC Expert RA) or A-(RU) on the national rating scale for the Russian Federation in the classification of ACRA (JSC);

for foreign rated entities — sovereign credit rating for the Russian Federation in respective currency on the international rating scale by at least one of the following rating agencies Fitch Ratings, S&P Global Ratings, Moody’s Investors Service (hereinafter, foreign rating agencies), decreased by two notches;

2. for the purpose of paragraph four of Clause 2 of the Ordinance, to establish the following credit ratings for bond issues (excluding credit institutions’ bond issues) acquired as part of the capital of a non-governmental pension fund after 13 July 2017 (in absence of the issue rating, the rating of the issuer of such bonds or the rating of surety (guarantor) for such bonds):

for Russian rated entities — ruBBB+ on the national rating scale for the Russian Federation in the classification of JSC Expert RA or BBB+(RU) on the national rating scale for the Russian Federation in the classification of ACRA (JSC);

for foreign rated entities — sovereign credit rating for the Russian Federation in respective currency on the international rating scale by at least one of the foreign rating agencies, decreased by three notches;

3. for the purposes of paragraph four of Clause 2 of the Ordinance, for bond issues acquired as part of the capital of a non-governmental pension fund before or on 13 July 2017 (in absence of the issue rating, the rating of the issuer of such bonds or the rating of surety (guarantor) for such bonds), to establish credit rating complying with the requirements of Clause 1 or 2 of this decision or with respective requirements for credit ratings set by the decision of the Bank of Russia Board of Directors as of 23 December 2016;

4. for the purpose of paragraph seven of Clause 2 of the Ordinance, to establish the following credit rating for the debtor:

for Russian rated entities — ruA- on the national rating scale for the Russian Federation in the classification of JSC Expert RA or A-(RU) on the national rating scale for the Russian Federation in the classification of ACRA (JSC);

for foreign rated entities — sovereign credit rating for the Russian Federation in respective currency on the international rating scale by at least one of the foreign rating agencies, decreased by two notches;

5. for the purpose of paragraph two of Clause 6 of the Ordinance, to establish the following credit rating for credit institutions: ruA- on the national rating scale for the Russian Federation in the classification of JSC Expert RA or A-(RU) on the national rating scale for the Russian Federation in the classification of ACRA (JSC).

6. for the purpose of this decision, the following types of credit ratings assigned by foreign rating agencies:

ratings by Fitch Ratings — Issuer Default Rating, Corporate Finance Obligations Rating, Long-term Rating of Structured Finance, and Project Finance and Public Finance Obligations;

ratings by S&P Global Ratings — Issuer Credit Rating, and Long-term Issue Credit Rating;

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. Corporate Family Rating is used with regard to an entity only if this rating is directly assigned to such entity.

7. for the purposes of this decision, the following types of ratings assigned by rating agencies JSC Expert RA or ACRA (JSC) are used:

ratings by the rating agency JSC Expert RA — creditworthiness ratings assigned to Russian banks, regional and municipal authorities on the national rating scale for the Russian Federation;

ratings by the rating agency ACRA (JSC) — credit ratings assigned on the national rating scale for the Russian Federation

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

9. This decision shall become effective since 14 July 2017.

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03.07.2017 00.00.00