RAEX Agency (Expert RA) reiterates PJSC Cherkizovo Group’s credit rating of “A++” with stable outlook

January 19, 2017

Moscow, Russia – January 19, 2017 - Cherkizovo Group (LSE: CHE; MOEX: GCHE), the largest vertically integrated meat and feed producer in Russia (“Cherkizovo” or the “Group”), announces that RAEX Agency (“RAEX” or the “Agency”) has reiterated the Group’s credit rating of “A++” with a stable outlook. RAEX has repealed the under review”status of the Group’s credit rating.

The key positive drivers behind the rating were the government’s support of the Group in the form of subsidized loans, the Group’s moderately high liquidity ratios, overall business diversification and Cherkizovo’s ability to leverage itself. On top of that the Agency noted the Group’s lack of dependency on major suppliers and customers, as well as high level of risk management, timely and accurate disclosure of financial information, and broad geography of Cherkizovo’s business.

The reiterated rating reflects stable financial position as Cherkizovo’s operational results improved on the back of gradual growth in meat consumption in Russia. Net debt/EBITDA ratio also demonstrated a positive trend during the year.