The downgrade primarily results from the Company's persistently loss-making operations, lower equity capital, and growing debt.

Last year, PJSC Stroytransgaz posted a net loss of almost RUB 1,413 million.

In 2014, gross profit of PJSC Stroytransgaz decreased by 26%, sales profit dropped below zero (sales loss amounting to RUB 80 million in 2014 against ca. RUB 840 million in sales profit in 2013).

Given that PJSC Stroytransgaz is currently operating at a loss, its uncovered losses keep piling up. Last year, the Company's uncovered loss on the balance sheet grew to RUB 6,974 million, with the result that its equity capital decreased by almost RUB 2,401 million in 2014.

At the same time, the Company's long-term loan debt soared 4.6 times in 2014. Furthermore, its short-term debt accounts for 62.5% of the total loan obligations. Total debt liabilities of PJSC Stroytransgaz reaches ca. RUB 20 billion exceeding its gross annual profit almost 11 times. In 2014, the Company's total loan debt increased more than 1.7 times.

PJSC Stroytransgaz established 1990 is one of the largest construction and development companies in Russia and the CIS implementing and managing industrial construction projects in the fuel / energy and other sectors for over 20 years. The Company provides all types of large-scale project implementation services from project documents to guarantee maintenance. The company's units are operating in 9 regions of Russia and 14 countries of the world. At the end of 2013, equity capital of PJSC Stroytransgaz was RUB 2.4 billion, assets totaled RUB 54.0 billion.

Full name: Public Joint Stock Company Stroytransgaz,

Short name: PJSC Stroytransgaz, PJSC STG.

This press release is based on the monitoring results of the current credit rating assigned to PJSC Stroytransgaz.

The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's creditworthiness and shall not be construed as advice on the purchase and sale of securities or the provision of loan facilities.

AK&M Rating Agency will not incur any responsibility for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993. CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.

CJSC Analysis, Consulting and Marketing Rating Agency

www.akmrating.ru

Ul. Gubkina 3, Moscow, Russia

Phone no.: (495 916-70-30, Fax: (499 132-69-18.

The downgrade primarily results from the Company's persistently loss-making operations, lower equity capital, and growing debt.

Last year, PJSC Stroytransgaz posted a net loss of almost RUB 1,413 million.

In 2014, gross profit of PJSC Stroytransgaz decreased by 26%, sales profit dropped below zero (sales loss amounting to RUB 80 million in 2014 against ca. RUB 840 million in sales profit in 2013).

Given that PJSC is currently operating at a loss, its uncovered losses keep piling up. Last year, the Company's uncovered loss on the balance sheet grew to RUB 6,974 million, with the result that its equity capital decreased by almost RUB 2,401 million in 2014.

At the same time, the Company's long-term loan debt soared 4.6 times in 2014. Furthermore, its short-term debt accounts for 62.5% of the total loan obligations. Total debt liabilities of PJSC Stroytransgaz reaches ca. RUB 20 billion exceeding its gross annual profit almost 11 times. In 2014, the Company's total loan debt increased more than 1.7 times.

PJSC Stroytransgaz established 1990 is one of the largest construction and development companies in Russia and the CIS implementing and managing industrial construction projects in the fuel / energy and other sectors for over 20 years. The Company provides all types of large-scale project implementation services from project documents to guarantee maintenance. The company's units are operating in 9 regions of Russia and 14 countries of the world. At the end of 2013, equity capital of PJSC Stroytransgaz was RUB 2.4 billion, assets totaled RUB 54.0 billion.

Full name: Public Joint Stock Company Stroytransgaz,

Short name: PJSC Stroytransgaz, PJSC STG.

This press release is based on the monitoring results of the current credit rating assigned to PJSC Stroytransgaz.

The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's creditworthiness and shall not be construed as advice on the purchase and sale of securities or the provision of loan facilities.

AK&M Rating Agency will not incur any responsibility for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993. CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.

CJSC Analysis, Consulting and Marketing Rating Agency

www.akmrating.ru

Ul. Gubkina 3, Moscow, Russia

Phone no.: (495 916-70-30, Fax: (499 132-69-18.