Is Rostelecom's AAA rating fair? Last week, Rostelecom issued another 15 billion ruble bond issue. This is already the 9th issue this year. Now the company has 25 issues with a total value of 395 billion rubles. Of these, 15 with a fixed coupon or discount of 225 billion and 10 floating for 170 billion. Almost all trade at par with a yield of 14.8–16.3% with a duration of up to 2.6 years. The company's rating, of course, is very high, but how justified is it if the business needs additional financing so often and in such quantities? What questions do you have about reporting? Profit-eating interest: 60.5 billion rubles paid. percent with an operating profit of 75.9 billion. The coverage for it is about 1.25 times. [Quite strict assessment. Rating agencies usually talk about 3.0 times EBITDA coverage]. FCF depends on the methodology: the company has minus 12.2 billion, but without the sale of assets, interest received and government subsidies - minus 20.1 billion. OIBDA supported by the state: other revenues + 44%, up to 17.9 billion, including through the project to eliminate the digital divide. That's 10% OIBDA. Half of the loans and borrowings - 298.6 billion - are short-term, and the money in the accounts is 18.8 billion. But there are credit lines that compensate for the last figure. Deferred capex: 14% of revenues in the first half of the year with a forecast for the year of about 20%. In the second half of the year, according to our calculations, about 130 billion rubles are needed. - Twice as much as the first. What external factors threaten the business? Servers in Russia have roughly doubled in price over the year, memory 5-7 times. This hits RTC-DPC: 27 data centers and about 30% of the market. From 2028, only Russian base stations can be installed, and there are more than a million foreign base stations - the replacement will fall on mobile T2. In the fall, drones attacked the data centers of Yandex and Sberbank. Rostelecom's facilities did not appear in the announcements, but its vice chairman called for the establishment of data centers to back up "Doomsday". In September, two of the company's highways in the Far East were damaged, and the connection was restored in about an hour.

Is Rostelecom's AAA rating fair? Last week, Rostelecom issued another 15 billion ruble bond issue. This is already the 9th issue this year. Now the company has 25 issues with a total value of 395 billion rubles. Of these, 15 with a fixed coupon or discount of 225 billion and 10 floating for 170 billion. Almost all trade at par with a yield of 14.8–16.3% with a duration of up to 2.6 years. The company's rating, of course, is very high, but how justified is it if the business needs additional financing so often and in such quantities? What questions do you have about reporting? Profit-eating interest: 60.5 billion rubles paid. percent with an operating profit of 75.9 billion. The coverage for it is about 1.25 times. [Quite strict assessment. Rating agencies usually talk about 3.0 times EBITDA coverage]. FCF depends on the methodology: the company has minus 12.2 billion, but without the sale of assets, interest received and government subsidies - minus 20.1 billion. OIBDA supported by the state: other revenues + 44%, up to 17.9 billion, including through the project to eliminate the digital divide. That's 10% OIBDA. Half of the loans and borrowings - 298.6 billion - are short-term, and the money in the accounts is 18.8 billion. But there are credit lines that compensate for the last figure. Deferred capex: 14% of revenues in the first half of the year with a forecast for the year of about 20%. In the second half of the year, according to our calculations, about 130 billion rubles are needed. - Twice as much as the first. What external factors threaten the business? Servers in Russia have roughly doubled in price over the year, memory 5-7 times. This hits RTC-DPC: 27 data centers and about 30% of the market. From 2028, only Russian base stations can be installed, and there are more than a million foreign base stations - the replacement will fall on mobile T2. In the fall, drones attacked the data centers of Yandex and Sberbank. Rostelecom's facilities did not appear in the announcements, but its vice chairman called for the establishment of data centers to back up "Doomsday". In September, two of the company's highways in the Far East were damaged, and the connection was restored in about an hour.