Rating scale

The Expert RA rating agency national scale is adapted to specifics of the Russian market and does not take into account general risk factors for all Russian companies. Owing to this approach, the process of rating assignment is more characterized by specific risks typical for this particular company or this type of business, which makes companies to be more differentiated in relation to the international rating scale without limiting a specific company level of rating to a level of a sovereign rating. As a result national scale credit ratings allow investors to compare companies in different branches of economy following one criterion: credit risk level.

Companies with high credit capacities:

A ++ :	Exceptionally high credit capacity level. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level exceed the level required to fulfill one’s obligations timely and in full volume. A risk of the company’s full or partial default is minimal.
A +:	High credit capacity level. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level correspond to, and mostly exceed the level required to fulfill one’s obligations timely and in full volume. A risk of the company’s full or partial default is insignificant.
А:	Sufficiently high credit capacity level. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level are adequate to the level required to fulfill one’s obligations timely and in full volume. A risk of the company’s full or partial default is low.

Companies with satisfactory credit capacity:

В++:	Credit capacity exceeding the average level in this particular rating class. Main indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level altogether are not in the way of normal functioning. Serious problems in the company’s main spheres of activity are absent. A risk of the company’s full or partial default is relatively low.
В+:	Satisfactory credit capacity, altogether in line with the average level in this particular rating class. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level, are mostly not in the way of normal functioning. But part of the factors affects or may affect in future the company’s activities. A risk of the company’s full or partial default is considered as probable.
В:	Credit capacity is assessed altogether as satisfactory, although its level is below average in this particular rating class. Analysis of indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level witnesses problems in certain spheres of the company business, which so far do not have domineering influence over the company’s ability to function normally. A risk of the company’s full or partial default is considered as moderate.

Companies with low credit capacity:

С++:	Altogether credit capacity is assessed as low, but the company has some potential for improvement. Certain indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level are not entirely in accord with obligations. At the same time the company has some potential to improve the situation. A risk of the company’s full or partial default is quite high.
С+:	Altogether credit capacity is assessed as low. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level are not entirely in accord with obligations. A risk of the company’s full or partial default is high.
С:	Altogether credit capacity is assessed as very low. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level are not in accord with obligations. A risk of the company’s full or partial default is extremely high.

Companies with unsatisfactory credit capacity:

D :

The company status is in total disagreement with its ability to perform its functions, or there is an extremely high probability of the company’s default on its obligations in short-term perspective.

As distinct from the credit rating, the reliability rating of a bond loan takes into consideration some specific types of collaterals and guarantees, presented by the loan trustees, and other specific methods of diminishing credit risks of issued securities. Therefore the reliability rating of a bond loan may be different from the company credit rating.

Corporate bonds with high credit capacities:

A++:	Corporate bonds are of exceptionally high credit capacity level. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level during the period of bond circulation exceed the level required to fulfill one’s obligations envisaged by emission timely and in full volume. A risk of the company’s full or partial default is minimal.
A+:	Corporate bonds are of high credit capacity level. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level during the period of bond circulation correspond to, and mostly exceed the level required to fulfill one’s obligations envisaged by emission timely and in full volume. A risk of the company’s full or partial default is insignificant.
А:	Corporate bonds are of sufficiently high credit capacity level. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level during the period of bond circulation are adequate to the level required to fulfill one’s obligations envisaged by emission timely and in full volume. A risk of the company’s full or partial default is low.

Corporate bonds with satisfactory credit capacity:

В++:	Corporate bonds credit capacity exceeding the average level in this particular rating class. Main indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level altogether are not in the way of normal functioning during the period of bond circulation. Serious problems in the company’s main spheres of activity are absent. A risk of the company’s full or partial default is relatively low.
В+:	Corporate bonds are of satisfactory credit capacity, altogether in line with the average level in this particular rating class. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level, are mostly not in the way of normal functioning during the period of bond circulation. But part of the factors affects or may affect in future the company’s activities. A risk of the company’s full or partial default is considered as probable.
В:	Credit capacity of corporate bonds is assessed altogether as satisfactory, although its level is below average in this particular rating class. Analysis of indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level during the period of bond circulation witnesses problems in certain spheres of the company business, which so far do not have domineering influence over the company’s ability to function normally. A risk of the company’s full or partial default is considered as moderate.

Corporate bonds with low credit capacity:

С++:	Altogether credit capacity of corporate bonds is assessed as low, but the company has some potential for improvement. Certain indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level are not entirely in accord with obligations envisaged by emission. At the same time the company has some potential to improve the situation during the period of bond circulation. A risk of the company’s full or partial default is quite high.
С+:	Altogether credit capacity of corporate bonds is assessed as low. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level are not entirely in accord with obligations envisaged by emission. A risk of the company’s full or partial default is high.
С:	Altogether credit capacity of corporate bonds is assessed as very low. Indicators of industrial and commercial activity, financial stability and ability to pay, as well as the company corporate governance level are not in accord with obligations envisaged by emission. A risk of the company’s full or partial default is extremely high.

Corporate bonds with unsatisfactory credit capacity:

D:	The company status is in total disagreement with its ability to fulfill its obligations envisaged by emission, or there is an extremely high probability of the company’s default on its obligations during the period of bond circulation.

ОDefinitions for both credit ratings and bond loan ratings may have an additional index pi (public information). The index means that the credit rating or the bond loan rating is assigned to the company only on the basis of publicly available information.

Methodology of rating

About the rating

Rating assignment procedure

Rating scale

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